Epiroc interim report Q2 2022
• Orders received increased 21% to MSEK 13 377 (11 070), organic increase of 6%. Excluding Russia, the organic order growth was 18%.
• Revenues increased 22% to MSEK 11 868 (9 733), organic increase of 9%.
• Operating profit increased 9% to MSEK 2 381 (2 182), corresponding to a margin of 20.1% (22.4).
• Items affecting comparability were MSEK -420 (-15), including a provision of MSEK -400 related to Russia.*
• Adjusted operating profit increased 27% to MSEK 2 801 (2 197), corresponding to a margin of 23.6% (22.6).
• Basic earnings per share were SEK 1.47 (1.40).
• Operating cash flow was MSEK 1 462 (1 229).
• Acquisitions of JTMEC, a provider of electrical infrastructure solutions, and of RNP México, a manufacturer of rock drills.**
• Decision to relocate production of surface drill rigs from Japan to China.***
CEO comments
High demand
The demand remained high and orders received increased 21% to MSEK 13 377. Several large equipment orders were won, of which many included battery-electric and automation solutions. Also, the service business performed strongly. In total, the organic order growth was 6%. Excluding Russia, the organic order growth was 18%.
We expect that the underlying demand, both for equipment and aftermarket, will remain at a high level in the near term.
Agility and resilience
The war in Ukraine is truly horrifying and we continue to take measures to protect our colleagues and manage the complex situation in Ukraine and Russia. See also page 6.
We also continue to face higher input costs and supply-chain challenges. However, our agile organization can adapt quickly to changes and challenges, and our large aftermarket business provides resilience.
Record revenues and adjusted margin
Our revenues increased 9% organically to a record MSEK 11 868. The adjusted operating profit increased 27% and reached MSEK 2 801. Items affecting comparability were MSEK -420, including a provision of MSEK -400 related to Russia. The adjusted operating margin improved to 23.6% (22.6).
Our operating cash flow increased to MSEK 1 462 (1 229), supported by higher operating profit, partly offset by build-up of working capital.
Best quarter ever for electrification
We offer market-leading solutions within automation, digitalization, and electrification and the second quarter was our best quarter ever for electrification. We won several orders for battery-electric equipment, also for greenfield projects, as well as for battery retrofits and electrical infrastructure solutions. And, shortly a customer will be testing our first battery-electric surface drill rig. We are excited to help our customers reach their sustainability goals.
Drive the productivity and sustainability transformation
In June we celebrated four years as a listed company. It has been an exciting time. We drive the productivity and sustainability transformation in our industry and will continue doing this by investing in innovation, aftermarket, and in options for the future. Some examples are the acquisitions of a provider of electrical infrastructure solutions and of a manufacturer of rock drills. Also, to enhance focus, we appointed a Chief Technology Officer and created a dedicated division for our digital solutions. We continue to build for the future, and I am proud of all our passionate and committed colleagues who take part in our journey.
Helena Hedbom
President and CEO
Please find the full report in the attached pdf. Additional financial documents are found on Epiroc’s Financial publications page.
For more information please contact:
Mattias Olsson, SVP Corporate Communications
+46 72 729 8295
ir@epiroc.com
Ola Kinnander, Media Relations Manager
+46 70 347 2455
media@epiroc.com
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 July 20, 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.
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