Epiroc, a major global marker manufacturer of drill rigs and hydraulic breakers for the quarrying and mining industries, has reported a 2% increase in revenue to SEK14,143m (€1,218.26m) for the first quarter of 2024, compared with SEK13,868m (€1,194.58m) in Q1 2023.
The Swedish-based company reports that orders received decreased by 4% to SEK14,162m in Q1 this year, while operating profit decreased by 13% to SEK2,760m (SEK3,161m).
President and CEO Helena Hedblom commented on the results: “The underlying mining activity continued to be high in the quarter. However, the level of large orders received was lower than in the comparable period, SEK400m vs. SEK900m. The orders received decreased to SEK14,162m (14,715m), corresponding to an organic decline of -3%. The organic order growth for service was strong at 9%, supported by mid-life upgrades and strong demand for mixed-fleet automation. On the construction side, the demand for hydraulic attachments remained weak. Demand within tunneling and infrastructure was stable.
“Sequentially, compared to the previous quarter, we achieved 2% organic growth, driven by the higher order intake for service and rock drilling tools.
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 several measures have been taken to strengthen efficiency and profitability: “Costs were higher than in the first quarter 2023, but sequentially, we have already achieved structural savings. Further measures will be taken throughout the organization. For example, we will increase efficiency within our service operations as well as in our manufacturing entities.”
She added: “We are increasing capacity in customer centers to speed up final modifications to shorten delivery time and improve invoicing.
“On April 1, we finalized the acquisition of Stanley Infrastructure, with revenues in 2023 of SEK4,700m and 1,380 employees. This acquisition strengthens our position in hydraulic attachments, especially in the United States, and positions us well to grasp future growth opportunities in construction and urban development.”
