Swedish mining equipment maker Epiroc reported quarterly operating earnings above market forecasts and a modest drop in order intake late on Wednesday but warned the pandemic would take a heavier toll moving deeper into the year.
The domestic rival of Sandvik said first-quarter operating profit was unchanged from a year ago at 1.93 billion Swedish crowns ($190.9 million), beating the 1.81 billion crown mean analyst forecast in a Refinitiv poll.
The domestic rival of Sandvik said first-quarter operating profit was unchanged from a year ago
Epiroc, which had been scheduled to issue its results on Thursday but unexpectedly brought forward the publication, said the operating profit included one-off costs of 21 million.
The company said order intake in the quarter fell 4% on a like-for-like basis as some customers stopped or reduced their activity as the novel coronavirus pandemic caused a growing number of countries to go into lockdown in March.
“As most of the impact was towards the end of the quarter, the financial impact in Q1, however, was limited,” the company said in a statement.
“We expect that the demand both for equipment and in the aftermarket will be lower and that the effects of the pandemic will have a significant negative impact on revenues and profit in Q2,” it added.
The company said separately its board was proposing that its May 12 shareholder meeting decide on a first 1.2 crown per share installment of its planned dividend but postpone any decision on the second half of it due to the pandemic.
“Epiroc has a strong financial position and the Board’s assessment of the dividend capacity has not changed,” it said.
“If the situation allows, the Board of Directors plans to call for an extraordinary general meeting later this year to decide on the second dividend instalment for the 2019 fiscal year.”
($1 = 10.1090 Swedish crowns)
(By Niklas Pollard; Editing by Jonathan Oatis)
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