Scott Tech sees lumpy global recovery
Scott Technology is seeing an uneven recovery in its global markets, with the Asia Pacific returning to normal more rapidly than in the US and Europe.
Still, the robotics and automation firm expects its earnings in the 12 months through August to face a material hit from the Covid-19 pandemic, including the cost of restructuring its global business.
Scott said while results will be influenced by the pandemic, there are signals that revenue streams are returning to normal as a number of projects come back online.
In Australia, Scott has recommenced work on an automated mine site lab for Rio Tinto’s Koodaideri iron ore project in Western Australia and has also recently signed a contract for an automated refuelling system for monster mining trucks.
The company confirmed that it has also restarted commissioning an appliance line for Bosch in China and it’s signed a deal for the supply of 30 of “Bladestop” machines to JBS USA, a North American processor of beef, pork and prepared foods.
Chief executive John Kippenberger said the North American meat sector is seeing increased demand for new robotic and automation given the “increased risks of Covid-19 in cold and congested operating environments”.
In adapting to operating under Covid restrictions, Scott has moved to “augmented reality”, where it can provide real-time support to local engineers.
Kippenberger said that where possible, team members are also being relocated or recruited to be closer to the customer.
While the repercussions of the virus continue to affect the global economy, the return to “business as usual” has been more positive than anticipated in some sectors and regions, particularly into the Australia, China and the New Zealand service business, he said.
“Activity in the USA and Europe remains more subdued and we think it will be some time before demand in those regions returns to pre-Covid levels.”
He said the company will continue to move ahead with its five-year strategy, focused on transitioning to a streamlined, regionally focus in its core markets. Scott shares closed yesterday at $1.80.