ENGCON has hailed the company’s ‘good profitability and strong cash flow’ after the business revealed its financial results for the second quarter of 2023.
Order intake declined 34% to SEK 341 million and organic order growth was down 38% compared with the same period last year. However, operating profit increased 5% to SEK 104 million and the operating margin was 20.5%. Net sales declined 5% to SEK 508 million.
For the period January to June 2023, order intake declined 32% to SEK 749 million but net sales increased 22% to SEK 1,199 million. Operating profit for the period increased 59% to SEK 302 million and the operating margin was 25.2%.
CEO Krister Blomgren said, “We find ourselves in a continued uncertain macroeconomic time, with high interest rates, inflation and general turbulence impacting the willingness to invest of our end customers. We are therefore seeing an expected reduction in order intake, particularly in the Nordic region and Europe, but even in other markets. The high penetration rate in the Nordic region means that we are even more dependent of developments in the construction and civil engineering industry and excavator sales.
“Dealers in the Nordic region and Europe have also built up inventories in previous quarters, which is further impacting order intake and sales. It is positive that certain parts of the European market are showing clear signs of recovery.
“We are continuing to make long-term investments with a logistics hub in the US and the expansion of the production plant in Poland while we have intensified focus on cost control throughout the organisation. Our focus on end-customer profitability is particularly relevant in these times and in dialogue with our customers, we will be even more clearly highlighting the advantages of our products in the form of cost savings and increased profitability.
“Our global presence, business model and strong financial position are creating a solid platform for long-term and sustainable growth. Together with our competent and dedicated employees, we are continuing our efforts to meet end-customer needs and to change the world of digging together.”
