Epiroc expects stable post-COVID-19 demand

Swedish mining equipment maker Epiroc has projected stable post-pandemic demand, citing positive customer sentiment towards its equipment and autonomous solutions in the mining sector during the first quarter of 2021.
Epiroc expects stable post-COVID-19 demand  Epiroc expects stable post-COVID-19 demand  Epiroc expects stable post-COVID-19 demand  Epiroc expects stable post-COVID-19 demand  Epiroc expects stable post-COVID-19 demand

The company won large equipment orders in the quarter

Orders received rose 9% to SK10.6 billion (US$1.2 billion), an organic increase of 21%. Meanwhile, revenues fell 4% to SK8.7 billion (US$1 billion), but this represented an organic increase of 6%.

The company in March purchased Meglab, a Canadian company with expertise in providing electrification infrastructure solutions to the mining industry. In April it also announced the acquisition of DandA Heavy Industries, a South Korean manufacturer of hydraulic breakers for the construction industry.

"Despite the pandemic, the customer activity was high and we saw good demand for our aftermarket offering," said Helena Hedblom, president and CEO. "On the equipment side, our customers continued to take investment decisions and we won several medium/large equipment orders."

Hedblom noted that demand for autonomous solutions both for surface and underground applications remained high in the quarter. 

"It is clear that our globally deployed and proven solutions have increased our customers' willingness to invest in these technolo¬gies. We see similar trends in digitalization and electri¬fication."

"We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term."

Despite the progress, investors reacted negatively to the growth rate in operating earnings. These rose to SK1.87 billion, below an analyst consensus figure of SK2.13 billion, sending share prices down 4% on the day.