Robit received €23.2m worth of orders in the first financial quarter of 2019, up by 30% on the €17.6m total in Q4 2018.
The Finnish drilling products and technology company says it is satisfied with its sales development.
Year-on-year net sales showed a 5% decline to €20.1m in Q1 2019 from €21.1m on the first quarter in 2018. On a sequential basis net sales grew by 7% from Q4 2018 (€18.8m).
"Sales development in the early part of the year creates a promising foundation for the rest of 2019 and will facilitate the company’s return to a growth track," the company commented.
It added that it has undertaken efficiency measures that have improved profitability. The efficiency programme, which was launched in December, is focused on four areas: developing the distributor network and the company’s own sales, better management of working capital, more effective use of factory network capacity and resources, and ensuring the motivation and performance of personnel.
As part of the programme, the company decided in March to move down the hole (DTH) product manufacturing at the Sherman factory in the USA to the company’s other manufacturing plants. Production at the Sherman factory will end during the second quarter of this year.
Robit says its goal in 2019 is to achieve positive EBITA profitability and a significant release of capital tied up in the business. It adds that the overall outlook for its target markets in 2019 is "positive", although there are regional differences in the demand of market segments.
"Mining industry demand for consumables is stable and the market is expected to grow," the company commented. "The construction industry and underground construction are more cyclical, and regional variations are greater. The well drilling market is also expected to remain active. The typically stable demand for consumables as well as growth in sales made possible by current market share provide Robit with good opportunities to increase market share in
2019."
