Epiroc sees strong mining demand but faces challenges in construction market
24 July 2024
Epiroc recorded a 6% increase in orders, totalling MSEK 16,349 (€1.4 billion), in its latest Q2 report for 2024. Large equipment orders contributed MSEK 950 (€82 million), nearly double compared to the previous year.
An illustration of ASI Mining’s solutions on a mine truck. (Photo: Epiroc)
Revenues saw a modest rise of 4% to MSEK 16,511 (€1.42 billion), although the company’s operating profit is reported to have dropped by 14% to MSEK 2,921 (€251 million), impacted by costs associated with the acquisition of Stanley Infrastructure and restructuring.
The company’s operating margin decreased to 17.7% from 21.5% the previous year.
The mining sector is said to remain robust, with significant growth in orders, especially for large equipment and mid-life upgrades, which the company says reflects strong demand for automation solutions.
In contrast, the construction market weakened, which particularly affected hydraulic attachments in key regions such as the US and Europe.
Epiroc says that it is advancing its automation capabilities by acquiring full ownership of ASI Mining and its role in the Roy Hill project, an iron ore mine in the Pilbara region of Western Australia, to create the world’s largest autonomous mixed fleet mine.
Helena Hedblom, President and CEO, emphasised the company’s commitment to providing innovative automation and remote-control solutions, enhancing productivity, safety, and sustainability in the mining industry. In the company’s report she added that she remains optimistic about the future growth of the construction market, despite current challenges.
