Mining equipment maker Epiroc upbeat on outlook after sharp profit jump

“In the short term, we expect underlying demand, both for equipment and aftermarket (services), to remain high,” the company said in a statement. said in a statement accompanying second-quarter earnings. The order intake is 400 million kroner, net proceeds of % but decreased 1% excluding acquisitions.

Epiroc relies heavily on sea freight to transport large and heavy equipment to customers, but inventory levels are high due to reduced port capacity.

Chief Executive Helena Hedblom told Reuters that outbound shipping capacity at the port of Gothenburg remained strong at the start of the second quarter. was a challenge but eased towards the end of the quarter.

Chief Financial Officer Håkan Folin said in a call to analysts that most of its current inventory is already on board for customers or waiting to be dispatched Finished goods, the company expects its inventories to dwindle as freight capacity increases. Martin Persson, equity fund manager at Swedish insurer Lansforsakringar that invests in large Swedish companies, said that overall, Epiroc was A “great company with high expectations” that performed in line with his expectations.

“There were some questions about their margins and inventory levels, but I think they answered them well on the phone,” Persson said.

operating profit jumped to 3 in the second quarter before the project. billion kroner ($50 million) from 2.8 billion in the same period last year, exceeding the average forecast of 3. billion (Refinitiv analyst survey).

($1=.200 Swedish Krona)