Epiroc expects demand to stay robust after Q2 profit beat
Swedish mining equipment maker Epiroc reported quarterly operating earnings above market expectations on Thursday, helped by earlier cost-cutting, and said it expected demand in the near term would remain at current strong levels.
Epiroc, a rival of Sweden’s Sandvik, said its operating profit rose to 2.26 billion Swedish crowns ($241 million) in the second quarter from 1.81 billion a year earlier, beating the 2.15 billion crown mean analysts’ forecast according to data from Refinitiv.
“Going forward, we do not see any clear signs that the current market situation will change,” Epiroc CEO Per Lindberg said in statement.
“Hence, we reiterate our view that the demand will remain at the current level in the near term, however noting that Q3 in general is slightly weaker than Q2.”
Epiroc shares turned positive following the results release, trading 3.0% higher by 1029 GMT.
The company, which makes equipment such as drill rigs, loaders and haulers, said mining clients were continuing to invest in new equipment, but noted lingering caution about committing to larger investments.
Epiroc said quarterly order intake fell 4% on a like-for-like basis, with a year-on-year decline for equipment but robust growth in its service business.
($1 = 9.3586 Swedish crowns)
(By Johannes Hellstrom; Editing by Niklas Pollard)