‘Record-high’ financial results for Epiroc
By Leila Steed24 July 2023
Attachments and mining equipment specialist Epiroc has published its second quarter (Q2) financial results, revealing a 34% rise in year-on-year revenues - which is higher than what the company was expecting.
The company brought in SEK15.9 billion (US$1.52 billion), reflecting a 17% increase in organic growth, compared to the same three months of last year.
It also saw its orders received rise by 15% to SEK15.4 billion (US$1.47 billion) - a figure that saw a 1% organic decline that was bolstered by a number of key acquisitions it made in 2022.
The acquisitions included that of Australia-based companies such as Remote Control Technologies and mining and connectivity specialist Radlink, which were said to have strengthened Epiroc’s position in automation, electrification and digitalization, as well as USA-based attachments manufacturer Wain-Roy.
Helena Hedblom, President and CEO, said: “Our revenues increased 34% to record-high MSEK15,910, driven by organic growth, particularly for equipment, as well as from acquisitions.
“I am pleased to see that our recent acquisitions have achieved higher revenues than anticipated. We had an especially strong development for automation solutions.”
Meanwhile the company’s Tools & Attachments segment saw its year-on-year orders increase by 27%, rising from SEK2.4 billion (US$230 million) in Q2 of 2022 to SEK3.1 billion (US$297 million) this year, and revenues of SEK3.4 billion (US$326 million) - up 22% on the same quarter last year.
Epiroc said the results showed “flat” organic development but that the acquisition of ground engaging tools specialist CR making a strong 19% contribution to the overall figure.
Speaking in general about Epiroc’s construction market activity, Helena said: “The customer activity remained high, especially in mining. We won several large equipment orders, albeit not at the same high level as in Q2 last year. The service business continued to perform well, supported by larger rebuilds of customers’ equipment.
“In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.”