Swedish mining equipment maker Epiroc reported a drop in third-quarter profit and revenue, citing negative currency effects even as organic growth was buoyed by high demand from the mining sector.
Operating profit fell to 2.80 billion Swedish kronor from 3.28 billion a year earlier, while revenue decreased 3% to 15.24 billion kronor, the company said Wednesday.
Organically, however, orders grew by 7% and revenue rose by 5%.
A key achievement in the quarter was the completion of a project at Hancock Iron Ore’s Roy Hill mine in Australia, where Epiroc converted a fleet of 78 haul trucks to be fully driverless, recognizing 300 million kronor in revenue.
"It is encouraging to see that many of the equipment orders include our latest technologies in both automation and electrification, leading to higher productivity, increased safety, reduced energy consumption and a lower total cost of ownership for our customers," CEO Helena Hedblom said in a statement.
The adjusted operating margin slipped to 19.0% from 19.7%, which the company attributed to product mix and reduced activity in the nickel segment.
Looking ahead, Epiroc said it expects mining demand to remain high, while demand from construction customers is anticipated to be stable at a low level.
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Swedish engineering group Epiroc said Friday it has successfully converted a fleet of 78 haul trucks to driverless operation at Hancock Iron Ore’s Roy Hill mine in Western Australia.
Swedish mining equipment maker Epiroc posted a 2% organic rise in second-quarter orders, as robust demand from miners for its equipment and automation solutions offset persistent weakness in the construction sector.