Third quarter 2022

• Order intake declined -5 per cent to SEK 324 million (341); organic order growth was -11 per cent.
• Net sales increased 16 per cent to SEK 416 million (359); organic net sales growth was 11 per cent.
• Operating profit increased 14 per cent to SEK 104 million (91) and the operating margin was 25 per cent (25).
• Profit for the period increased 7 per cent to SEK 79 million (74).
• Basic and diluted earnings per share amounted to SEK 0.49 (0.45).

January – September 2022

• Order intake increased 19 per cent to SEK 1,425 million (1,193); organic order growth was 15 per cent.
• Net sales increased 25 per cent to SEK 1,397 million (1,118); organic net sales growth was 20 per cent.
• Operating profit increased 19 per cent to SEK 294 million (248) and the operating margin was 21 per cent (22).
• Profit for the period increased 22 per cent to SEK 235 million (193).
• Basic and diluted earnings per share amounted to SEK 1.42 (1.15).

Significant events during the third quarter

• In September, a 5 per cent price increase for customers was announced from 1 January 2023.

CEO Krister Blomgren comments:

”An extraordinary order book and stable margins resulted in a strong third quarter. Demand was lower in the Nordic region while other geographical market regions reported growth. Net sales for the quarter grew organically by 11 per cent, with the increase attributable to the Nordic region and Europe while delivery lead times impacted sales in the Americas and Asia-Oceania. Delivery capacity improved during the end of the quarter but was impacted by challenges involving certain components and we are now seeing a stable, higher rate of production with shorter lead times as a result. We expect lead times to be further reduced in the next few quarters even if we continue to be affected by the availability of certain components.

It was a stable quarter in terms of profitability, with an operating margin of 25 per cent despite higher costs for the ongoing change of Group-wide business systems. We view the quarter’s strong gross margin of 45 per cent as a result of our price increases compensating for cost increases and energy surcharges in the supply chain. We also believe that the price increases implemented in 2022 will have a further impact in the quarters ahead. To compensate for further cost increases, we announced a new 5 per cent price increase for customers after the end of the year.

Overall, we are pleased with the earnings and profitability trend in the third quarter. At the same time, there is scope for a higher rate of production and shorter lead times. The prevailing macro and global situation means that order intake in the quarters ahead is difficult to predict. However, we are well equipped to meet future challenges. We continue to focus on strengthening our position as an industry-leading innovator of tiltrotators as there is a global and long-term need for more sustainable and resource-efficient digging.”

Q3 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-q3-2022

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=10010041

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 Communications & 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 13 local sales companies and an established network of resellers around the world. Net sales amounted to approximately SEK 1.5 billion in 2021. engcon’s B share is listed on Nasdaq Stockholm.

For more information, visit www.engcongroup.com