Epiroc posts 21% organic growth in Q1

Swedish mining, quarrying and construction equipment manufacturer Epiroc saw a 9% increase in orders during the first quarter of 2021 to a record high of SEK10,690m (€1,056m), corresponding to 21% organic year-on-year growth.
Breaking, Drilling & Blasting / April 30, 2021
By Liam McLoughlin
 CEO Helena Hedblom says there is strong demand for Epiroc's autonomous, digitalisation and electrification solutions
CEO Helena Hedblom says there is strong demand for Epiroc's autonomous, digitalisation and electrification solutions

However Q1 revenues decreased by 4% to SEK8,773m (€866m), compared with SEK9,134m (€902m) in the first quarter of 2020. In addition, operating profit decreased 3% to SEK1,867m (€184m) compared with SEK1,932m (€191m) in Q1 2020. The company said the fall in operating profit was partly due to accounting changes.

Epiroc says that customer activity was high despite the COVID-19 pandemic and there was good demand for its aftermarket offering. On the equipment side, the company says customers continued to take investment decisions and Epiroc won several medium/large equipment orders.

It expects that demand for both equipment and aftermarket will remain at a stable high level in the near term.

The company introduced its new vision - Dare to think new - at the start of 2021, highlighting its focus on providing innovations to improve efficiency and safety for customers.

In Q1 Epiroc also introduced Boomer M20, a new generation of one of its most sold underground drill rigs, with added features including protected hydraulics, electronics and sensors.

Another innovation is the battery retrofit for existing equipment, in which the diesel engine is replaced with a battery-electric driveline. The ST1030 loader, which Epiroc says is one of its most popular loaders, is the first model for which the retrofit solution will be available.   

In addition to investing in innovation to support organic growth, Epiroc says it is also growing through acquisitions, with two announced this year. The first is Meglab, a Canadian company with expertise in providing electrification infrastructure solutions to the mining industry. Epiroc is also buying DandA Heavy Industries, a South Korean manufacturer of hydraulic breakers for the construction industry. It says both companies will strengthen its offering and contribute to profitable growth.

CEO Helena Hedblom said that demand for Epiroc's autonomous solutions in both surface and underground applications remained high in the quarter.

"It is clear that our globally deployed and proven solutions have increased our customers’ willingness to invest in these technologies," she added. "We see similar trends in digitalisation and electrification."

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