Epiroc has posted record operating profit in the March quarter, with orders amounting to 13.8 billion Swedish kroner, or US$1.43 billion.

This marked a 29% increase in orders, 18% of which were organic. The service division recorded a 22% increase, while tools and attachments recorded an 11% jump.

Operating profit increased 41% to 2.63 Swedish kroner (US$272.1 million).

"It is encouraging to see the high demand for our equipment, for our solutions within automation, digitalisation, electrification, as well as for our aftermarket offering," Epiroc chief executive Helena Hedblom said.

Epiroc has been affected by the ongoing war in Ukraine, as well as supply chain disruptions, the company said.

In 2021, revenues in Russia and Ukraine amounted to 6.8% of group revenues (2.72 billion Swedish kroner/US$281.63). Epiroc has approximately 1.8 billion Swedish kroner (US$186.4 million) in orders in hand as of the end of March this year to these two countries.

Russian orders accounted for 6.1% of Epiroc revenues in 2021, while Ukraine accounted only for 0.7% of group revenues. Exposure to these markets cost approximately 1 billion Swedish kroner (US$103.5 million) in working capital, cash, and fixed assets.

Epiroc paused deliveries to Russia on March 1.

Higher costs in this quarter, including research and development as well as acquisitions, led to a drop in operating cash flow from 1.6 billion Swedish kroner (US$165.63) in the December quarter 2021 to 867 Swedish kroner (US$89.7 million) in the March quarter.

Net working capital increased by 23% to 13.79 billion Swedish kroner (US$1.43 billion).