January 31, 2023
Strong performance in a challenging market
Throughout 2022, Epiroc managed significant supply-chain challenges, including disruptions resulting from the war in Ukraine. In March we stopped deliveries into Russia, which at the time was our fourth largest market.
Customer activity remained high in 2022. We won many large equipment orders and we had strong development in the aftermarket.
We launched many ground-breaking innovations and made several acquisitions that help customers increase safety and productivity, and reduce emissions. Demand is continuously increasing for our electrification and automation solutions, and we strengthened our position as a market leader in these areas.
The organization executed well on the strategy and we delivered profitable growth. All in all, it was a record year for Epiroc.
High customer activity in the fourth quarter
The demand remained high in the fourth quarter. That said, large equipment orders are often lumpy and we did not receive as many large orders as in previous quarters. Service continued to grow well, supported by high customer activity. The order intake increased 18% to MSEK 13 705 (11 643).
In the near term, we expect that the underlying demand, both for equipment and aftermarket, will remain at a high level.
The period of strong order growth, easing supply-chain challenges and a good output level from our production sites led to record-high revenues. Organically, our revenues increased 8% to MSEK 13 936.
The adjusted operating profit increased 29% to MSEK 3 302 (2 554). The adjusted operating margin improved to 23.7% (22.9), supported by organic growth.
Following a period of strong equipment growth, with lead times of around 9-12 months and extended freight times, the quarter ended with a higher level of working capital. This in turn impacted the operating cash flow negatively and it amounted to MSEK 1 519 (2 415).
Dare to think new
To continue to drive the industry’s ongoing productivity and sustainability transformation, we are investing more than ever in R&D; MSEK 1 438 (1 172) for the full year. This is resulting in exciting new products and solutions. The acquired companies serve the same purpose, to provide customers with the best solutions available today and in the future.
Innovations that make a true difference
Do you remember our collaboration with Roy Hill in Australia in creating the world’s largest autonomous mine? In January, we announced that Epiroc will continue to support Roy Hill as they enter the final stage and convert their mixed fleet of 96 haul trucks to driverless operation. After a two-year testing phase, the solution Epiroc has developed in collaboration with ASI Mining has proved to be more productive and safe than conventional solutions.
Another highlight is that we in joint collaboration with Agnico Eagle Mines and Orica have successfully commenced live blasting using Avatel at the Kittilä mine in Finland. Avatel is the world's first semi-automated charging system for underground use. It is a game changer as safety is significantly improved during the charging cycle.
A stronger Epiroc than ever
As we enter 2023, Epiroc stands stronger than ever. Our employees are our greatest asset and I am proud of the hard work and all achievements. We are committed to transform the industry and create value for all our stakeholders.
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. The information was submitted for publication, through the agency of the contact persons above, at 11:30 CET on January 31, 2023.
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 50 billion in 2022, and has around 17 000 passionate employees supporting and collaborating with customers in around 150 countries. Learn more at www.epirocgroup.com.