October 21, 2021
Strong financial result in Q3
The activity was high in the quarter. Our customers continued to invest and we achieved record orders received. Despite global supply-chain challenges, both revenues and operating profit increased.
Supported by a good aftermarket, acquisitions and several large orders, the orders received increased 31% to MSEK 12 245. This corresponds to 24% organic growth compared to Q3 2020. Acquisitions contributed with 7%. Equipment achieved the highest organic order growth of 43%. Also the aftermarket remained strong with an organic growth of 13% in Service and 14% in Tools & Attachments.
Sequentially, i.e. compared to the previous quarter, the orders received increased 3% organically.
We expect that demand, both for equipment and aftermarket, will remain at a high level in the near term.
Increased revenues and profit
Revenues increased 11% organically to MSEK 9 966 with strong growth for the aftermarket.
Our operating profit increased 29% to MSEK 2 352. The adjusted operating margin improved to 23.4% (21.7). It was supported by increased volumes, mix and good cost control, but diluted by acquisitions and currency.
The supply-chain challenges, both inbound and outbound, increased during the quarter. However, the organization is managing the situation well and the financial impact was limited.
Automation gaining traction
Many of the orders that we won in the quarter include our most advanced technologies involving both automation and digitalization. These technologies enable increased productivity and lower cost of ownership for our customers while at the same time enabling improved safety and lower CO2 emissions. We are excited to see our customers embracing these solutions.
Initiatives to improve diversity and inclusion
From experience, I know that diverse teams perform better – and at Epiroc, we always strive to do things better. We foster an inclusive culture, which means a workforce with a mix of nationalities, experiences and gender. For example, one of our goals is to double the number of women in operational roles by 2030. We have several initiatives ongoing in this area. In India, we have started a service academy for women, who will be working on a large service contract. We have also initiated several programs to increase the number of women in production and service.
Creating options for the future
We are investing more than ever in aftermarket and innovations to ensure we remain the preferred partner for our customers. In addition to our significant investment in R&D, we acquire businesses to grow our reach and to access technologies. In the quarter, we announced the acquisition of FVT Research, a specialist in mining vehicle battery conversions. Since the start of the year, we have finalized six acquisitions with combined annual revenues of more than one billion SEK. With these acquisitions, Epiroc will further develop the position as the enabler for customers when it comes to increased productivity and sustainability – and we do it by leading the way within automation, digitalization and electrification.
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 set out above, at 7.30 am CEST on October 21, 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 about 15 000 passionate employees supporting and collaborating with customers in about 150 countries. Learn more at www.epirocgroup.com.