Swedish mining equipment manufacturer Epiroc says a “high level” of mining customer activity drove its June quarter orders up 13% year-on-year while its revenues also rose 10% yoy in the period.
The company reported Q2 revenues of SEK16.7 billion (US$1.72 billion). Orders were SEK17.3 billion (US$1.78 billion). Adjusted operating profit of SEK3.35 billion (US$346 million) delivered a 20.1% margin versus 19.7% for the same time last year.
“Just as in recent quarters the customer activity within mining remained at a high level, supported by historically high mineral prices in segments to which we have a large exposure, such as copper and gold,” Epiroc CEO Helena Hedblom said.
“The equipment orders increased 30% organically and our large orders – orders above SEK150 million – amounted to SEK720 million. The highest growth was achieved within exploration.
“The investment sentiment within infrastructure and construction projects has improved, which led to stable order development.
“In the near term, we expect mining demand to remain high and demand from infrastructure customers to increase somewhat.”
Mining and infrastructure customers accounted for 82% and 18%, respectively, of orders received in the latest quarter.
Hedblom said about 100 investors, analysts and financial media came to Epiroc’s June Capital Markets Day in Orebro, Sweden.
The company reaffirmed its aim to grow revenues to SEK100 billion (US$10.4 billion) – about 80% mining and more than 60% of that aftermarket sales – by 2031.
Stockholm-listed Epiroc’s share price closed down 7.6% for the week at SEK235, capitalising the company at SEK272 billion (US$28.15 billion).
