ENGCON has reported ‘record’ high net sales and ‘stable profitability’ for the final quarter of 2022.
The Swedish-headquartered tiltrotator manufacturer said that while order intake declined -29%, net sales increased by 46% to SEK 541 million. Organic net sales growth was 38%.
Operating profit is up 57% to SEK 121 million (77), and the operating margin was 22.4%.
Profit for the period increased 20% to SEK 90 million.
For January to December 2022, order intake increased 1% and net sales rose 30% to SEK 1,938 million. Operating profit increased 28% to SEK 415 million and profit for the period grew 21% to SEK 325 million.
CEO Krister Blomgren said, “We end a historic year in which the company took the step of entering the stock market with our strongest ever quarter in terms of sales. Operating profit and profitability exceeded our financial targets and a strong order book provides security for the quarter ahead.
“The year began with a larger price hike to compensate for increased supplier prices combined with component shortages, long lead times and the outbreak of war in Ukraine. Considerable pre-ordering and bunkering effects as a consequence of price hikes and long lead times resulted in a large proportion of orders being brought forward in the fourth quarter of 2021 and the first quarter of 2022.
“Combined with increased economic uncertainty, inflation and interest rates, this led to an expected downturn in Nordic and European markets in the fourth quarter compared with exceptional comparative figures. Despite this, the order intake was at a high level when seen from a long-term perspective.
“High net sales in the quarter with full impact from the year’s price increases generated a strong operating margin of 22.4% despite higher costs for the ongoing change of group-wide business system. The positive earnings and profitability trend during the year is testament to our ability to meet and handle the challenges that result from an uncertain business environment and this is strengthening us for times ahead.
“The continued high activity in the Americas is pleasing to witness. Our overall solution is attracting the US market, where we see considerable growth potential. It is worth noting that there was a break in the trend in 2022, with growth markets recording higher order intake than the Nordic region for the first time, thus making us less dependent on the mature market’s more cyclical excavator sales.
“We continue to invest in expansion in sales organisation, production capacity in Poland and third generation tiltrotator system. Combined with a strong order book, shorter delivery times and a higher rate of production this provides us with a solid platform for continued growth and stable earnings despite being faced with a market that is difficult to predict.”
