Attachments manufacturer hails strong cash flow after ‘challenging’ quarter

ATTACHMENTS specialist engcon has reported a 7% increase in order intake for the third quarter of 2023 to SEK 347 million. Organic order growth was 2%.

Net sales fell 6% to SEK 391 million, while operating profit declined 47% to SEK 55 million.

engcon added that profit for the quarter decreased 48% to SEK 41 million.

For the period January to September 2023, order intake is down 23% compared with the same period last year, but net sales are up 14%. Profit for the nine-month period increased 18% to SEK 276 million.

Krister Blomgren, engcon CEO, said, “After a challenging quarter, it is a positive signal that the order intake has increased slightly and we are seeing signs of stabilisation with an organic order growth of 2%. The order intake of SEK 347 million is in line with the preceding quarter and previous years.

“We can see that the investments made in our sales organisation have yielded results in our growth markets. Growth in the Americas and positive development in parts of Europe are an indication that we are on the right path. The trend in the Nordic region remains cautious with order growth of 9% from low levels. The market is difficult to predict due to high interest rates and uncertainty, which is leading to shrinking excavator sales. The high penetration rate in the Nordic region makes this market considerably more cyclical than Europe and the Americas.

“Cash flow is strong and looking at January – September we have record high net sales of SEK 1,590 million and an operating margin of 22.5%. We have a long history of profitable and capital-efficient growth and we are well equipped to meet the challenges that an uncertain business environment can present the years ahead.”