By Elviira Luoma
(Reuters) – Swedish mining equipment maker Epiroc on Thursday reported a fourth-quarter operating profit that beat market expectations and said it expects underlying mining demand, both for equipment and aftermarket, to remain at a high level in the near term.
Mining customer demand remained high, while construction customer demand stayed weak, Epiroc said in a statement, adding that construction demand is expected to remain weak in the near term.
This outlook contrasts slightly with more optimistic views from some of Epiroc’s peers, according to analysts at J.P. Morgan.
Swedish peer Sandvik last week signalled stabilising orders for early 2025 and little immediate threat from U.S. tariffs, after it beat market expectations for fourth-quarter order intake.
The company’s shares fell 1.5% in choppy trading at 1234 GMT, after initially rising 2.7% following the results.
Epiroc reported quarterly operating profit of 3.43 billion Swedish crowns ($311.58 million), compared to 3.35 billion crowns a year earlier. Analysts, on average, expected 3.34 billion crowns profit, according to data compiled by LSEG.
Epiroc, maker of drill rigs, rock excavation and construction equipment among others, said its fourth-quarter order intake increased 12% to 16.2 billion crowns, with organic increase of 5%.
Amidst growing concerns over impending U.S. tariffs on Canada, Mexico, and China, Epiroc expects any impact on operations to be minimal, CEO Helena Hedblom told Reuters.
“We have a large manufacturing base within U.S., and we don’t have a lot of exposure when it comes to sourcing material from China, and not much finished goods are coming from China either into the U.S.,” Hedblom added.
($1 = 11.0085 Swedish crowns)
(Reporting by Elviira Luoma in Gdansk, Editing by Eileen Soreng and Tasim Zahid)
