Epiroc sees solid Q4 results

By Mike Hayes02 February 2021

Manufacturer reports ‘organic growth’ in 2020 despite significant effects of pandemic

Epiroc_Boomer E2

Swedish mining and infrastructure equipment manufacturer Epiroc reports that its revenues have fallen 5%, to €965 million. However, in its interim report for the fourth quarter of 2020, the company countered these figures by saying revenues effectively saw an ‘organic increase’ of 6%.

Epiroc’s chief executive officer, Helena Hedblom, said revenues were “…up 6% organically with solid growth for our aftermarket business. Service performed particularly well and had an organic revenue growth of 13%. This in combination with cost savings contributed to an improved operating margin, despite a negative currency effect. The adjusted margin improved to 23.2%, with strong contribution from Tools & Attachments.”

Epiroc also reported growth of 10% in its operating profit and 22.6% in its operating margin.

Although the company admitted it had been significantly affected by the Covid-19 pandemic in the first half of 2020, it said it had adapted its operating methods, lowering costs and making innovation a priority, enabling it ultimately to deliver a profit.

In Epiroc’s financial report, Hedblom said, “We expect that the demand, both for equipment and after­market, will remain stable in the near term. Uncertainty, however, still remains regarding the Covid-19 development and any further related restrictions.”

She added that “Automation, digitalisation and electrification solutions are in high demand and we connect more and more machines.”

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