Tiltrotator manufacturer hails ‘healthy demand and profitability’ in Q2

The engcon stand at ScotPlant 2022

ENGCON has confirmed ‘continued healthy growth’ and ‘stable profitability’ in an interim report the manufacturer has provided for Q2, 2022.

In the second quarter of this year, the business revealed order intake increased 20% to SEK 519 million, while net sales rose by 35% to SEK 534 million.

Operating profit is up 19% to SEK 99 million and the operating margin was 18.5%.

From January to June 2022, order intake increased 29% to SEK 1,103 million, while net sales for the period also rose 29% to SEK 981 million.

A third generation tiltrotator system was launched at various trade shows, while in June engcon’s class B shares were listed on Nasdaq Stockholm.

CEO Krister Blomgren said, “We noted healthy demand and profitability in the second quarter despite an uncertain business environment. Our customers’ investment appetite remained high, resulting in organic order intake growth of 16%.

“A strong order book will provide the basis for stable earnings for the quarters ahead. However, record high energy prices and the subsequent consequences may affect demand from our customers.

“Net sales for the quarter increased by 31% organically and operating profit improved by 19% with contributions from all geographical markets. The gross margin was stable and price increases introduced at the start of the year as well as in early April offset somewhat the higher prices of raw materials, components and shipping.

“We anticipate that the price increases will gradually reach full effect in the next two quarters. The availability of certain components increased during the quarter, and even if deliveries cannot yet be optimised, we are seeing a reduction in lead times, which is positive.

“In the long term, we see continued healthy growth for resource-efficient digging, and our ambition is to continue to strengthen our position as an industry-leading innovator of tiltrotators.”