Q3 2024 Epiroc AB Earnings Call Transcript
Key Points
- Epiroc AB (EPIAF) reported a record high in large equipment orders, amounting to SEK1.4 billion, indicating strong demand from mining customers.
- The company achieved an 8% growth in orders received year-on-year, with a strong organic growth of 6%, driven primarily by mining.
- Epiroc AB (EPIAF) showcased several groundbreaking innovations at MINExpo, including the hybrid Minetruck MT66 S eDrive, which attracted significant interest.
- The company has made progress in sustainability, with a 24% reduction in CO2e emissions from operations and a high sustainability score from EcoVadis.
- Epiroc AB (EPIAF) has improved its safety metrics, with a decrease in the total recordable injury frequency rate, and has increased diversity within its workforce.
- The construction segment remained weak, particularly impacting the attachment business, with further softening in the US market.
- The operating profit was flat year-over-year, and the adjusted operating margin decreased from 21.8% to 19.7%, partly due to impairments of intangible assets.
- The tools & attachments segment experienced a negative impact on margins due to acquisitions, particularly from Stanley Infrastructure, which had lower profitability.
- Epiroc AB (EPIAF) faced a negative organic order development of minus 3% sequentially compared to the previous quarter.
- The company reported an increase in net debt, driven by recent acquisitions, and a higher net working capital, which is not satisfactory year-on-year.
Hello, and a warm welcome to the Epiroc Q3 results presentation. My name is Karin Larsson. I'm Head of IR and Media here at Epiroc.
Before we start the presentation, I would like to say thank you to all 80-plus investors and analysts who joined us in Las Vegas for our Capital Markets Day last month. I also would like to thank you who joined on the live webcast.
From the feedback that we have gathered, we -- it's clear that you would like to have more color on the margin. And we will do our best today to provide you with more information.
And with me today to present the results, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. They will briefly present the results before we end with a Q&A session.
So without further ado, Helena, please, the stage is yours.
Thank you, Karin. So let's get going then. So starting then with the highlights from the
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