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.
Total orders received fell 7% to 15.28 billion Swedish kronor, while revenue declined 8% to 15.13 billion Swedish kronor, with currency fluctuations having a negative 9% impact on both figures, the company said Friday.
The company's adjusted operating profit was 2.98 billion Swedish kronor, with the adjusted operating margin holding steady at 19.7% compared to the same period last year.
"Mining customers’ willingness to invest has increased lately, also within exploration, and we continue to see a growing interest for our automation and electrification solutions," CEO Helena Hedblom said.
"The demand for attachments from the construction industry, however, remained weak."
The quarter's orders included the first 100 million Swedish kronor from its largest-ever contract, a 2.2 billion Swedish kronor deal to supply a fleet of autonomous and electric surface mining equipment to Fortescue in Australia.
The five-year agreement was first announced in April and is part of Fortescue's push to decarbonize its operations.
Looking ahead, Epiroc said it expects mining demand to remain at a high level, while demand from construction customers is forecast to stay weak.
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