Epiroc, the Sweden-headquartered, global market manufacturer of drill rigs and hydraulic breakers for the quarrying and mining industries, posted healthy trading numbers for Q4 2023.
The company’s orders rose 5% to MSEK 14 388 (13 705), revenues increased 12% to MSEK 15 568 (13 936), and operating profit increased 4% to MSEK 3 349 (3 235).
Two acquisitions were announced in the quarter, including the acquisition of STANLEY Infrastructure, with annual revenues of approximately SEK 4.7 billion. The Epiroc board proposes a dividend of SEK 3.80 (3.40) per share to be paid in two equal instalments.
Commenting on Epiroc’s Q4 2023 trading, company CEO and president Helena Hedblom said: “Within mining, the activity levels were high, and we won several large orders. One of them is a multi-year order for digital solutions, which will strengthen safety and productivity at Codelco’s El Teniente copper mine in Chile. The total order value is MSEK 250, with MSEK 50 booked in the quarter. It is encouraging to see that the demand for our automation and digitalisation offering is strong.
“The demand from construction customers, on the other hand, was weak, impacting mainly the hydraulic attachments business negatively.
“In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level. Demand from construction customers is expected to remain soft.”
Hedblom said that Epiroc was a “solid cash generating business”, which enables the company to “seize opportunities and invest for profitable growth in the long term”.
She continued: “Our announced acquisition of STANLEY Infrastructure – with annual revenues of around SEK 4.7 billion – is an example of how we seize opportunities in challenging market environments to build our position for the future. Together, we will be a stronger supplier of hydraulic and infrastructure attachments, especially in the large and important US market, and can capitalise on a long-term global growth trend in deconstruction and recycling.”
Hedblom also thanked everyone at Epiroc for an encouraging full year 2023. “Your skills and hard work have led to another successful year. Onwards, we will continue to deliver on our strategy to provide our customers with the best solutions to strengthen their safety and productivity, reduce their emissions, and ultimately improve their results. On that note, I want to thank all customers and investors who have placed their trust in Epiroc. We will do our utmost to make 2024 an even better year.”
