Sweden-based tiltrotator and attachment manufacturer engcon has revealed good profitability in its new quarterly and half-year trading figures.
The company’s Q2 2023 operating profit increased by 5% to SEK 104mn, and the operating margin was 20.5%. Net sales declined -5% to SEK 508mn. Order intake declined -34% to SEK 341mn.
Further published trading figures for 1 January– 30 June 2023 showed engcon’s operating profit increased 59% to SEK 302mn. Net sales increased 22% to SEK 1,199mn (981), and engcon’s order intake declined -32% to SEK 749mn.
Commenting on the new company performance data, engcon CEO Krister Blomgren said: “We find ourselves in a continued uncertain macroeconomic time, with high-interest rates, inflation and general turbulence impacting the willingness to invest of our end customers. We are therefore seeing an expected reduction in order intake, particularly in the Nordic region and Europe, but even in other markets.
“The high penetration rate in the Nordic region means that we are even more dependent on developments in the construction and civil engineering industry and excavator sales. Dealers in the Nordic region and Europe have also built up inventories in previous quarters, further impacting order intake and sales. It is positive that certain parts of the European market are showing clear signs of recovery.”
Blomgren says engcon is continuing to make long-term investments with a logistics hub in the US and expanding its production plant in Poland. At the same time, the company has intensified focus on cost control throughout the organisation.
He continued: “Our focus on end-customer profitability is particularly relevant in these times, and in dialogue with our customers, we will be even more clearly highlighting the advantages of our products in the form of cost savings and increased profitability. Our global presence, business model, and strong financial position create a solid platform for long-term and sustainable growth. Together with our competent and dedicated employees, we continue our efforts to meet end-customer needs and change the world of digging together.”
