Continued healthy growth and stable profitability
Second quarter 2022
- Order intake increased 20 per cent to SEK 519 million (431); organic order growth was 16 per cent.
- Net sales increased 35 per cent to SEK 534 million (395); organic net sales growth was 31 per cent.
- Operating profit increased 19 per cent to SEK 99 million (83) and the operating margin was 18.5 per cent (21.0).
- Profit for the period increased 32 per cent to SEK 82 million (62).
- Basic and diluted earnings per share amounted to SEK 0.47 (0.37).
January – June 2022
- Order intake increased 29 per cent to SEK 1,103 million (852); organic order growth was 25 per cent.
- Net sales increased 29 per cent to SEK 981 million (759); organic net sales growth was 25 per cent.
- Operating profit increased 21 per cent to SEK 190 million (157) and the operating margin was 19.4 per cent (20.7).
- Profit for the period increased 31 per cent to SEK 156 million (119).
- Basic and diluted earnings per share amounted to SEK 0.93 (0.70).
Significant events during the second quarter
- Price increases for customers were announced on new orders as of 1 April 2022 in addition to the annual price adjustments that came into effect on 1 January.
- A third generation tiltrotator system was launched at various trade shows.
- At an Extraordinary General Meeting on 9 May, an extra dividend of SEK 90 million was approved, which was paid at the end of May.
- In June, Rototilt Group AB filed a lawsuit regarding an alleged infringement of patented sensor technology in the Q-safe locking system. engcon has contested the claim.
- On 17 June, engcon’s class B shares were listed on Nasdaq Stockholm.
CEO Krister Blomgren comments:
”We noted healthy demand and profitability in the second quarter despite an uncertain business environment. Our customers’ investment appetite remained high, resulting in organic order intake growth of 16 per cent. A strong order book will provide the basis for stable earnings for the quarters ahead. However, record-high energy prices and the subsequent consequences may affect demand from our customers.
Net sales for the quarter increased by 31 per cent organically and operating profit improved by 19 per cent with contributions from all geographical markets. The gross margin was stable and price increases introduced at the start of the year as well as in early April offset somewhat the higher prices of raw materials, components and shipping. We anticipate that the price increases will gradually reach full effect in the next two quarters. The availability of certain components increased during the quarter, and even if deliveries cannot yet be optimised, we are seeing a reduction in lead times, which is positive.
In the long term, we see continued healthy growth for resource-efficient digging, and our ambition is to continue to strengthen our position as an industry-leading innovator of tiltrotators.”