• Thu. Jun 30th, 2022

Mining equipment maker Epiroc profits, orders beat forecast

ByRandall B. Phelps

Apr 25, 2022

STOCKHOLM (Reuters) – Swedish mining gear maker Epiroc on Monday reported first-quarter results and orders that beat market expectations, despite a negative impact on its business in Russia and Ukraine, and forecast strong demand ahead. .

The global mining industry has benefited from rising commodity prices, a development further accelerated by Russia’s invasion of Ukraine, but it also faces high global inflation and rising mining costs. ‘energy.

Epiroc last month suspended all deliveries to its customers in Russia, which accounted for around 6% of the group’s total sales in 2021, after Moscow launched what it calls a “special military operation” in its smaller neighbor.

Epiroc’s operating profit rose 41% from a year earlier to 2.63 billion crowns ($272.9 million) against an average analyst forecast of 2.47 billion, according to data from Refinitiv.

“Our business was negatively impacted in Russia and Ukraine, primarily in March, as we halted deliveries to Russia and business in Ukraine was very limited,” Chief Executive Helena Hedblom said in a statement.

Epiroc said outstanding orders in the two countries totaled around 1.8 billion crowns at the end of March, adding that it was uncertain if and when those orders would be delivered and invoiced. It has about 500 employees in Russia but no production.

Order intake reached 13.8 billion kroner, up 18% organically from the previous quarter and above the 12.4 billion kroner expected by analysts, and Epiroc said it expects demand for both equipment and services remains high in the short term.

Shares of Epiroc, down 4.2% before the results, fell 1.3% at 0949 GMT.

Sandvik, Epiroc’s main rival, reported earnings last week, with its mining unit posting a 22% organic or comparable increase in quarterly order intake.

($1 = 9.6376 Swedish kronor)

(Story corrects company name in fourth paragraph.)

(Reporting by Helena Soderpalm; Editing by Simon Johnson and Niklas Pollard)