• Order intake declined -34 per cent to SEK 341 million (519); organic order growth was -38 per cent.
• Net sales declined -5 per cent to SEK 508 million (534); organic net sales growth was -10 per cent.
• Operating profit increased 5 per cent to SEK 104 million (99) and the operating margin was 20.5 per cent (18.5).
• Profit for the period increased 5 per cent to SEK 86 million (82).
• Basic and diluted earnings per share amounted to SEK 0.55 (0.47).

January – June 2023

• Order intake declined -32 per cent to SEK 749 million (1,101); organic order growth was -35 per cent.
• Net sales increased 22 per cent to SEK 1,199 million (981); organic net sales growth was 17 per cent.
• Operating profit increased 59 per cent to SEK 302 million (190) and the operating margin was 25.2 per cent (19.4).
• Profit for the period increased 51 per cent to SEK 235 million (156).
• Basic and diluted earnings per share amounted to SEK 1.48 (0.93).

CEO Krister Blomgren comments:

“We find ourselves in a continued uncertain macroeconomic time, with high interest rates, inflation and general turbulence impacting the willingness to invest of our end customers. We are therefore seeing an expected reduction in order intake, particularly in the Nordic region and Europe, but even in other markets. The high penetration rate in the Nordic region means that we are even more dependent of developments in the construction and civil engineering industry and excavator sales. Dealers in the Nordic region and Europe have also built up inventories in previous quarters, which is further impacting order intake and sales. It is positive that certain parts of the European market are showing clear signs of recovery.

We are continuing to make long-term investments with a logistics hub in the US and the expansion of the production plant in Poland while we have intensified focus on cost control throughout the organisation. Our focus on end-customer profitability is particularly relevant in these times and in dialogue with our customers, we will be even more clearly highlighting the advantages of our products in the form of cost savings and increased profitability. Our global presence, business model and strong financial position are creating a solid platform for long-term and sustainable growth. Together with our competent and dedicated employees, we are continuing our efforts to meet end-customer needs and to change the world of digging together. “

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-q2-2023

To access the telephone conference, 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=200865

The presentation material and a recorded version of the conference will be available at www.engcongroup.com.

For more information, please contact:

Krister Blomgren, CEO
krister.blomgren@engcon.se
+46 70 529 92 65

Jens Blom, CFO
jens.blom@engcon.se
+46 76 147 45 77

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 2022. engcon’s B share is listed on Nasdaq Stockholm.

For more information, visit www.engcongroup.com