October 26, 2022
The third quarter was a strong quarter in many ways. The order intake remained high and we successfully managed to increase output, despite supply-chain challenges. This translated into record revenues and profit.
Demand remained high. Excluding Russia, the order intake increased 5% organically to MSEK 13 324 (11 493). We won several large equipment orders and the aftermarket developed well, with a particularly strong growth in service.
Many orders included automation, digitalization and electrification solutions, which help our customers to increase safety and productivity, and lower emissions. One example is an order we received for collision avoidance system for more than 60 underground machines in Africa. Another example is an order won by our recently acquired company JTMEC that will provide the electrical infrastructure to a major tunnelling project in Australia. These solutions are critical for customers regardless of business climate.
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
Revenues increased 12% organically to a record MSEK 12 802. A large portion of our revenues comes from the aftermarket. To further enhance our focus and build even stronger customer relations, we will establish regional Parts & Services divisions in 2023.
The adjusted operating profit increased 31% to MSEK 3 064 (2 331). The adjusted operating margin improved to 23.9% (23.4), supported by the organic growth. The reported operating profit was MSEK 2 900 (2 352), including a provision related to Russia of MSEK -150.
The operating cash flow increased to MSEK 1 814 (1 613), supported by higher operating profit, but negatively impacted by working capital.
Sustainability and productivity transformation
Innovation is one of our strategic focus areas. We continuously expand our offerings and complement our growth with acquisitions that accelerate realization of our strategy. For example, AARD Mining Equipment widens our range of underground machines for mines with low mining heights, and Radlink and Geoscan strengthen our digital offerings. Radlink offers robust wireless networks that are vital for both automation and digitalization. Geoscan enhances the knowledge of the ore body, which in turn increases productivity throughout the mining process.
By collaborating closely with customers, partners and innovation leaders also in other industries, we drive the transformation of the mining and construction industries. Together, we make it happen.
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 October 26, 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.