Mining gear maker Epiroc profit lags forecasts, shares fall
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STOCKHOLM, April 28 (Reuters) – Swedish mining gear maker Epiroc EPIRa.ST reported first-quarter operating earnings below market expectations on Wednesday, sending its shares down more than 4%.
Operating earnings at the firm rose to 1.87 billion Swedish crowns ($223.2 million) from 1.93 billion a year earlier, lagging the 2.13 billion average analyst forecast according to Refinitiv data. Earnings included negative one-off items of 149 million crowns.
Epiroc said order intake reached 10.7 billion crowns in the quarter, up 21% on a like-for-like basis from the year-earlier quarter, as customer activity remained high despite the negative impact from the pandemic in many markets.
“We expect that the demand, both for equipment and aftermarket, will remain at a stable high level in the near term,” Epiroc Chief Executive Helena Hedblom said in a statement.
Epiroc shares, down around 2% ahead of the report, fell back following the results to trade 4.5% lower by 1123 GMT. The shares were up around 30% this year as of Tuesday’s close.
Sandvik SAND.ST, Epiroc’s top rival, reported earnings last week where its mining unit recorded a 36% like-for-like rise in quarterly order bookings.
($1 = 8.3787 Swedish crowns)