Mining equipment maker Epiroc’s Q4 profit rises in line with expectations

STOCKHOLM (Reuters) – Swedish mining gear maker Epiroc reported fourth-quarter operating earnings roughly in line with market expectations on Wednesday and forecast continued strong demand in the near term.

Mining industry sentiment has improved over the past year with prices of many metals firming, despite the coronavirus pandemic still affecting many countries’ economies.

Operating profit increased 17% from a year earlier to 2.59 billion crowns ($280.0 million) against an average analyst forecast of 2.62 billion crowns according to a Refinitiv poll.

Order intake at Epiroc was 11.6 billion crowns, up 19% organically from the year-earlier quarter but slightly below the 11.7 billion crowns expected by analysts.

“Revenues increased and both operating profit and margin reached new records, despite challenges with the Covid-19 pandemic and in the supply chain,” Epiroc Chief Executive Helena Hedblom said in a statement.

“In the near term, we expect that demand, both for equipment and aftermarket, will remain at a high level,” she said.

The company proposed a dividend for 2021 of 3.00 crowns per share, versus a mean forecast of 2.87 crowns.

Sandvik, Epiroc’s top rival, reported earnings last week with its mining unit posting a 30% organic rise in quarterly order intake.

Epiroc shares fell back following the results traded down 2.6% by 1045 GMT.

($1 = 9.2493 Swedish crowns)

(Reporting by Anna Ringstrom and Johan Ahlander, Editing by Louise Heavens)