Epiroc reports record orders for 2021

Swedish mining, quarrying and construction equipment manufacturer Epiroc says that high customer activity combined with increased investment willingness led to record-high orders received in 2021 of SEK45,648m (€4,371.2m).
Breaking, Drilling & Blasting / January 27, 2022
By Liam McLoughlin
Epiroc says demand for its quarrying and mining products remains strong with orders up 25% year-on-year in Q4 2021
Epiroc says demand for its quarrying and mining products remains strong with orders up 25% year-on-year in Q4 2021

The company says that 2021 was a successful year with revenues increasing and both operating profit and margin reached new records, despite challenges with the Covid-19 pandemic and in the supply chain.

Epiroc adds that it completed eight acquisitions, launched a number of innovations, and made good progress in the sustainability area.

The demand remained strong in the final part of the year and orders received increased 25% to SEK11,643m (€1,114.92m) in the fourth quarter. This corresponds to 19% organic growth compared to Q4 2020.

Acquisitions contributed with 4%, and the aftermarket performed strongly with an organic growth of 19% in Service and 16% in Tools & Attachments.

Epiroc president and CEO Helena Hedblom said: "I am convinced that our local presence with skilled service technicians and aftermarket support functions contribute to this development. Equipment also grew strongly with orders received increasing 20% organically."  

Sequentially, i.e. compared to the previous quarter, orders received decreased 5% organically, compared to the record-high Q3. In the near term, we expect that demand, both for equipment and after¬market, will remain at a high level.

Revenues increased 9% organically to a record high of SEK11,173m (€1,069.9m), and reported operating profit increased 17% to SEK2,594m (€248.4.92m). The adjusted operating margin was 22.9%, supported by currency but diluted by acquisitions. The constraints in the supply-chain increased.

Hedblom said that the company is driving its industry’s transition towards reduced climate impact, not least with its growing offering of battery-electric equipment. "Our ambitious climate targets, including our commitment to halve our CO2 emissions from the use of our equipment by 2030, were validated by Science Based Targets initiative (SBTi)," she added. "This means that our industry-leading position within sustainability has been reinforced."

With the Covid-19 pandemic still holding the world in a tight grip, Hedblom says Epiroc's main priority remains safety, while supporting its customers’ operations.

She summarised: "2021 was indeed a record year. We have shown that we can adapt quickly to changes and that we always are ready to walk that extra mile to support our customers.

"I am looking forward to further achievements in 2022."

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