Epiroc CEO & president welcomes strong start to 2023

Epiroc had a strong first quarter with a record order intake valued at SEK 15,148mn (€1.331bn +10%), including a strong contribution from acquisitions. 
Breaking, Drilling & Blasting / May 1, 2023
By Guy Woodford
​ Epiroc HB 7000 hydraulic breaker on an excavator at Son Amat limestone quarry, Mallorca ​

Welcoming the global market manufacturer of drill rigs and hydraulic breakers for the quarrying and mining industries' healthy Q1, Eprioc CEO and president Helena Hedblom said: "We won several large equipment orders, indicating a continued high investment willingness among customers. For example, we won our largest-ever automation order, SEK 500mn (€43.94mn), to convert Roy Hill's mixed fleet of almost a hundred mine trucks to driverless operation in Australia. This will make Roy Hill the world's largest autonomous mine. The project attracts significant customer attention, and we are happy to showcase our market-leading solutions within automation – for loading, haulage and drilling – both on the surface and underground."

Hedblom said Epiroc's service business continued to perform well, supported by mid-life upgrades of customers' equipment. She said the OEM's "broad and attractive" offering, combined with the work of its 7,300 "committed" service technicians, contributed to the strong development. Hedblom expects the underlying demand for equipment and aftermarkets to remain high in the near term.

Helena Hedblom
Helena Hedblom, Epiroc CEO & president

She continued: "Our revenues increased 25% to SEK 13,868mn (€1.218bn), with a strong contribution from both organic and acquired growth. EBIT operating profit increased by 20% to SEK 3,161mn (€277.82mn). Our adjusted operating margin was 23% (23.3%), supported by organic growth and the currency, while acquisitions diluted."

Other highlights in the quarter included Epiroc's autonomous surface drills reaching a milestone; they have now successfully drilled the equivalent length of more than one lap around the world. 

"Also, we are going to the Moon!" exclaimed Hedblom. "We have signed a long-term collaboration agreement with the global lunar resource development company, ispace, to provide technology for its future Moon missions. 

"At the CONEXPO 2023 fair in Las Vegas, we showcased our latest innovations to make the construction industry more sustainable, efficient, and environmentally friendly. 

"We widened our battery-electric offering further and launched the Scooptram ST18 SG (Smart and Green) loader. By not using diesel, the loader eliminates 365 tonnes of CO2e emissions annually, corresponding to approximately the emissions from 100 diesel cars. 

Hedblom said acquisitions remain an important contribution to Epiroc's growth. "Year-to-date, we have closed three acquisitions with combined revenues of SEK 2,400mn (€210.94mn). With the acquisition of CR, Epiroc expands its offering of essential consumables and related digital solutions. Mernok Elektronik strengthens our position as a world-leading automation and safety solutions provider for mining operations. AARD Mining Equipment also offers low-profile underground machines for mines with low mining heights."

Hedblom said Epiroc is committed to providing the best solutions to accelerate the transformation toward a more productive and sustainable industry. "Innovation is key to this. To foster innovation and creativity, we encourage our employees to take on responsibility, be open-minded, inclusive, and, last but not least, dare to think new. One example of us leading the way is our new global parental leave policy, which guarantees all Epiroc employees a minimum of 12 weeks of paid parental leave. With this gender-less policy, we dare to think new."

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