Swedish mining gear manufacturer, Epiroc reported a 23pc lower intake of orders in Q2 2020, largely due to the shuttering of mines across the globe.
In its Q2 2020 earnings report, Epiroc’s chief executive officer, Helena Hedblom, said that the pandemic significantly impacted the company’s operations, but the team adapted well to cut costs. She expects demand to be negatively impacted especially for its rock tools products in the near future.
The company’s order intake for the first half of the year, order intake fell by 13pc to SEK17.8bn ($2.07bn) from SEK20.6bn for the same period last year. In Q2 2020 orders stood at SEK8.1bn, down by 23pc from SEK10.5bn in the prior-year period.
Epiroc’s revenue in Q2 fell by 20pc over the same quarter in the prior year to SEK8.5bn, while operating profits dipped by 37pc to SEK1.4bn.
The equipment and service division saw a 20pc decline in orders to SEK6.1bn while the rock-cutting, mining tools, and attachments division’s orders declined by 30pc dip to SEK1.9bn.
In April, the company had announced it would consolidate production of its exploration drilling tools in Canada. The production will gradually move from North Bay to Montréal during 2020, affecting about 65 employees in North Bay.
($1 = SEK8.86)