April 28, 2021
High customer activity and record orders received
The Covid-19 pandemic is still affecting our every-day lives and the main priority in the quarter has been to keep employees, customers and partners safe.
Despite the pandemic, the customer activity was high and we saw good demand for our aftermarket offering. On the equipment side, our customers continued to take investment decisions and we won several medium/large equipment orders.
The orders received increased 9% to a record high of MSEK 10 690, corresponding to 21% organic growth. Sequentially, i.e. compared to the previous quarter, the orders increased 16% organically.
We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term.
Improved profitability and stable cash flow
Revenues increased 6% organically to MSEK 8 773 with organic growth for both equipment and aftermarket.
The adjusted operating margin was positively impacted by increased volumes and cost savings and improved to 23.0% (20.9).
The operating cash flow was stable at MSEK 1 610.
Strong demand for autonomous solutions
The demand for autonomous solutions both for surface and underground applications remained high in the quarter. It is clear that our globally deployed and proven solutions have increased our customers’ willingness to invest in these technologies. We see similar trends in digitalization and electrification.
We dare to think new
In the beginning of the year, we introduced our new vision - Dare to think new - highlighting our relentless focus on providing innovations that improve efficiency and safety for our customers.
One innovation presented in the quarter is the Boomer M20. It is a new generation of one of our most sold underground drill rigs and it has unique features, such as protected hydraulics, electronics and sensors.
Another innovation is the battery retrofit for existing equipment, in which the diesel engine is replaced with a battery-electric driveline. The ST1030 loader, which is one of our most popular loaders, is the first model for which the retrofit solution will be available.
Creating options for the future
In addition to investing in innovation to support organic growth, we also grow through acquisitions. This year, we have announced two acquisitions. In March, we announced the acquisition of Meglab, a Canadian company with expertise in providing electrification infrastructure solutions to the mining industry. In April, we announced the acquisition of DandA Heavy Industries, a South Korean manufacturer of hydraulic breakers for the construction industry. Both companies will strengthen our offering and contribute to profitable growth.
Strengthen customer relationships
Financial results are of course important and a good measurement of our success, but just as important is how we achieve these results. Therefore, in February, we launched an updated version of our Code of Conduct, which supports us to walk the talk. By conducting our business in an ethical and socially responsible manner while offering the best products, solutions and services, we will strengthen our customer relationships further.
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on Epiroc’s Financial publications page.
This information is information that Epiroc AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons above, at 12:00 noon CEST on April 28, 2021.
Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. With ground-breaking technology, Epiroc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK 36 billion in 2020, and has 14 000 passionate employees supporting and collaborating with customers in about 150 countries. Learn more at www.epirocgroup.com.