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The company has reported a 28.2% year-on-year drop in consolidated revenue to €10.7 million (US$11.6 million) in the March quarter, with operating activities swinging to a €2.1 million loss from a positive result of €1.6 million in the same period last year.

"The economic consequences arising from the coronavirus pandemic are expected to continue to weigh heavily on demand in the global market for mining equipment this year," said chief executive Hans Joachim Theiss.

New sales revenue was down 11% at €5.4 million while service and spare parts revenue fell 38% to €5.3 million, said the company, citing a "severely deteriorating market environment".

"Despite the great uncertainties currently prevailing in the market, we will continue to push ahead with our strategic initiatives in product development and sales, as well as with improving group structures," added Theiss.

Electromobility, urban development trends and economically strategic raw materials are among the sectors SMT Scharf has identified for growth, added the company.

The company has resumed business operations in China, which had been suspended from January to the end of March due to the pandemic.

"In light of full order books and Chinese mining companies' investment needs due to [envirometal standards] regulation, we continue to expect catch-up effects in the Chinese market from the second half of the year."