The Sweden-headquartered major global market manufacturer of drill rigs and hydraulic breakers for the quarrying, mining and construction industries, saw it revenues increase 4% to MSEK 16,511 (15 910), while large orders amounted to MSEK 950 (550). Orders received increased 6% to MSEK 16 349 (15 436). Epiroc's operating profit was down 14% to MSEK 2 921 (3 413). The operating margin was 17.7% (21.5).
Several acquisitions were completed and/or announced in the quarter, including Stanley Infrastructure.
Commenting on Eprioc's Q2 2024 performance, company CEO and president Helena Hedblom said: "Mining activity continued to be strong in the quarter and the orders received increased to MSEK 16 349 (15 436), corresponding to an organic growth of 1%. The organic service growth was 5%, driven by mid-life upgrades and a strong demand for mixed-fleet automation.
"The construction market weakened further in the quarter, impacting mainly the aftermarket business. The demand for hydraulic attachments in important markets, such as the United States and Europe, was especially weak.
"In the near term, we expect that the underlying mining demand, both for equipment and aftermarket, will remain at a high level, while demand from construction customers is expected to remain weak."
Hedblom said that efficiency measures were carried out as planned in the quarter. Sequentially, for comparable units, the number of employees decreased by around 450, mainly within service and manufacturing. Further measures for increased efficiency have already been initiated.
She continued: "In the quarter, we closed the acquisition of Stanley Infrastructure and announced the acquisition of ACB+. Together, we will be a leader within attachments and quick couplers, providing customers with a more complete range of productivity solutions. Long term, the construction market is attractive, with an anticipated annual growth rate of 4-5%, with attachments used for deconstruction and recycling of steel and copper expected to grow even more."
On July 3 2024, Epiroc acquired the remaining shares of ASI Mining, one of its collaboration partners in the Roy Hill project in Australia.
"In this project, we are converting a mixed fleet of around 100 haul trucks to driverless operations. When this project is complete, we will have the created the world’s largest autonomous mixed fleet mine," said Hedblom.
"I am excited about the uptake for our automation solutions including mixed fleet products for both surface and underground applications. These applications deliver proven benefits for our customers, including increased productivity, improved safety and lower emissions. We are the one-stop shop for mixed-fleet automation and remote-control solutions, regardless of manufacturer or type of equipment, mainly thanks to acquisitions such as ASI Mining and RCT."
Hedblom noted that in Q2 Epiroc successfully deployed a battery-electric trolley truck system for underground mining in close collaboration with ABB and Boliden. "This brings the mining industry closer to realising the all-electric mine of the future, with sustainable, productive operations and improved working conditions.
"We are happy that customers continue to choose to collaborate with us to provide them with the right solutions for the future. Together we make it happen."
