Epiroc reports 17% revenue rise

The company said the demand from construction customers continued to be weak, impacting mainly the hydraulic attachments business negatively. (Photo: Epiroc)

During the third quarter of the year its order intake rose to SEK14.36 billion (US$1.2 million), up from SEK12.32 billion (US$1.1 billion) the previous year, with revenues for the three months of SEK14.99 billion (US$1.34 billion), compared to SEK12.8 billion (US$1.14 billion) for the same period in 2022.

The figures represent organic growth of 9% and 7% respectively.

In the tools and attachments division, orders received increased 17% to SEK2.92 billion (US$261.7 million) corresponding to an organic increase of 2%. Acquisitions, mainly that of ground engaging tools specialist CR, contributed with 15% while currency was flat.

In Q3 of 2022 Epiroc made the decision to add back its Russian order book, which resulted the orders received decreased by 1 % organically.

The demand from construction customers continued to be weak, impacting mainly the hydraulic attachments business negatively.

Compared to the previous year, orders received in local currency, including acquisitions, increased in all regions, with the strongest growth achieved in Asia and Australia.

Sequentially, orders received decreased by 9% organically. Revenues increased by 18% to SEK3.18 billion (US$285 million) corresponding to an organic decrease of 2%. 

Commenting on the Epiroc’s group-wide figures, Helena Hedblom, president and CEO of Epiroc, said: “The demand and activity level remained high within mining, and several large mining equipment orders were won. It was a particularly strong demand for automation and connectivity solutions. Construction customers, on the other hand, were more tentative.

“As anticipated, the demand in the third quarter was seasonally weaker than in the previous quarter. In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level. Demand from construction customers is expected to be soft.”

“In the quarter, we won our largest-ever order, MSEK 700, to provide Kamoa Copper in Democratic Republic of the Congo with underground equipment. After several years with local presence, the collaboration between Epiroc and Kamoa Copper has deepened into a real productivity and sustainability partnership.

“It is especially exciting to contribute to the success of the Kamoa-Kakula copper mining complex, as it is projected to be among the world’s lowest greenhouse gas-emitting copper mines per unit of metal produced. The ordered machines have several advanced features, such as Epiroc’s telematics system, which allows for intelligent monitoring of machine performance and productivity in real-time.”

Rounding out her quarterly statement, the industry leader issues a stark safety warning to other companies and contractors. Helena revealed that the during past quarter Epiroc had experienced the tragic loss of an employee, who died while working on a site in Kazakhstan.

Helena said: “The increasing number of service technicians in the field comes with a great responsibility. We must make sure all our employees always act with safety in mind.

“Several actions have been taken to reduce injuries and we have a positive trend in the development of our safety indicators. That said, I am very sad to share that we have lost an employee in a fatal accident in the quarter [in Kazakhstan].

“Safety is our top priority and it is crucial that all Epiroc employees come home safe and sound after the working day. To everyone reading this; please, never compromise on safety”, she concluded.

Epiroc is working with the customer and local government to investigate the circumstances around the accident.