April 25, 2022
A strong start
The year 2022 started off strongly. The demand remained at a high level and orders received increased 29% to a record-high BSEK 13.8. This corresponds to 18% organic growth compared to the previous year. It is encouraging to see the high demand for our equipment, for our solutions within automation, digitalization, electrification, as well as for our aftermarket offering. Several large- and medium-sized orders were won, of which many included battery-electric vehicles and automation features. The order intake for services was also strong.
Increased revenues and operating profit
Revenues increased 14% organically to MSEK 11 088. Our reported operating profit increased 41% and reached a new record of MSEK 2 631. The adjusted operating margin increased to 23.3% (23.0). It was supported by organic revenue growth, but diluted by acquisitions.
Our operating cash flow decreased to MSEK 867 (1 610), impacted by a build-up of working capital due to strong growth and constraints in the supply chain.
Disruptions from the war in Ukraine and the Covid-19 pandemic
The war in Ukraine and the resulting humanitarian suffering is truly horrifying. Our primary concern is the safety and well-being of our employees and we have taken several measures to keep our colleagues safe. Our business was negatively impacted in Russia and Ukraine, mainly in March, as we paused deliveries to Russia and the activities in Ukraine have been very limited. Our exposure to Russia and Ukraine is presented on page 6.
The impact from the Covid-19 pandemic decreased, but the challenges in the supply chain continued to negatively impact our operations.
In the near term, we expect that demand, both for equipment and aftermarket, will remain at a high level.
Dare to think new
Innovations, acquisitions, and partnerships strengthen our position as a leading global productivity and sustainability partner.
We introduced Mobius for Drills, a platform that will lead mines towards automation and connectivity. It enables multi-vehicle command, control and monitoring. We also introduced a more efficient and powerful blasthole drill rig. Both innovations aim to increase safety and productivity for our customers.
I am pleased that we are partnering with steel manufacturer SSAB to utilize fossil-free steel in the production of our underground mining equipment. It is clear that our innovation agenda goes hand-in-hand with our customers’ sustainability agenda. Going forward, we will continue to think new, innovate, collaborate, and create options for the future.
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 11:30 CEST on April 25, 2022.
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 40 billion in 2021, and has more than 15 500 passionate employees supporting and collaborating with customers in more than 150 countries. Learn more at www.epirocgroup.com.