Second quarter 2024
- Order intake increased 27 per cent to SEK 433 million (341); organic order growth was 26 per cent.
- Net sales declined 11 per cent to SEK 450 million (508); organic net sales growth was -12 per cent.
- Operating profit declined 21 per cent to SEK 82 million (104) and the operating margin was 18.2 per cent (20.5).
- Profit for the quarter decreased 28 per cent to SEK 62 million (86).
- Basic and diluted earnings per share amounted to SEK 0.37 (0.55).
CEO Krister Blomgren comments:
"We can now look back on a stable second quarter in which the gradual recovery we have seen in previous quarters continued. The order intake increased organically by 26 per cent and amounted to SEK 433 million (341). Net sales amounted to SEK 450 million (508), corresponding to an organic decline of 12 per cent compared with the year-earlier quarter when a large order book contributed to high deliveries. The gross margin for the quarter was high and was driven by a favourable product and market mix and amounted to 45 per cent (41). Operating profit amounted to SEK 82 million (104), despite somewhat higher selling overheads, yielding an operating margin of 18 per cent (21). I am proud to be able to confirm that despite lower volumes, we are approaching our financial target of an operating margin of 20 per cent.
We are forecasting a stable trend for the quarters ahead with slight growth compared with the preceding year. In 2025, we believe that there will be a stronger performance in the Nordic region, where our assessment is that there is a considerable need to replace older excavators, which will benefit tiltrotator sales.
Our vision is to change the world of digging. Despite uncertain times and a weak economy, our strong financial position has enabled investments in the sales organisation, a new business system and a new product generation. Together with our business model based on capital-efficient and scalable production, this will enable us to meet market demand when the economy recovers."
Q2 presentation today at 11.00 CEST
The report will be presented by Krister Blomgren, CEO and Jens Blom, CFO at 11.00 a.m. CEST today at a webcasted telephone conference accessible via this link:
https://ir.financialhearings.com/engcon-q2-report-2024
To access the teleconference, and thereby be able to ask questions, please register via the link below. After registration, you will be provided phone numbers and a conference ID to log in.
https://conference.financialhearings.com/teleconference/?id=50048766
The presentation material and a recorded version of the conference will be available at www.engcongroup.com.
For more information, please contact:
Anne Vågström, Head of Investor Relations
anne.vagstrom@engcon.se
+46 76 126 40 84
engcon is the leading global supplier of tiltrotators and associated equipment that enhance efficiency, flexibility, profitability, safety and sustainability of excavators. With knowledge, commitment and a high level of service, engcon's slightly more than 400 employees create success for their customers. engcon was founded in 1990, headquartered in Strömsund, Sweden and address the market through 14 local sales companies and an established network of resellers around the world. Net sales amounted to approximately SEK 1.9 billion in 2023. engcon's B share is listed on Nasdaq Stockholm.
For more information, visit www.engcongroup.com
This information is information that engcon AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-19 08:00 CEST.
