Epiroc lags Q3 operating profit estimates on weak construction demand (updated)

Epiroc AB

25/10/2024 07:15

(Adds orders and outlook in paragraphs 5-7)
       Oct 25 (Reuters) - Swedish mining equipment maker Epiroc
 EPIRa.ST  reported a third-quarter operating profit below
market expectations on Friday and said construction demand had
remained weak.
    Epiroc's quarterly operating profit rose to 3.28 billion
Swedish crowns ($310.3 million) from 3.26 billion a year
earlier, but missed analysts' mean forecast of 3.39 billion
crowns in an LSEG poll.
    "For construction, as anticipated, demand remained weak,
especially for attachments, where orders slowed further in the
United States," CEO Helena Hedblom said in the earnings
statement.
    Supply chain bottlenecks and high costs have weighed on the
mining and construction sectors for many quarters, though
Epiroc's level of orders has remained solid over the past year.
    The group, which makes drill rigs, rock excavation and
construction equipment among others, said its quarterly order
intake rose 8% to 15.52 billion crowns, above the 15.48 billion
expected by analysts. 
    On an organic basis, which excludes contributions from
acquisitions, the order intake grew by 6%.
    It reiterated its full-year forecasts, saying it expected
demand from construction sector to remain weak in the near term,
while underlying mining demand should stay at a high level. 
($1 = 10.5694 Swedish crowns)

 (Reporting by Tilla Sjalvaag and Elviira Luoma in Gdansk;
editing by Milla Nissi)
 ((Elviira.luoma@thomsonreuters.com))