EPIPF - Epiroc AB (publ) (EPOKY) Q1 2024 Earnings Call Transcript
2024-04-23 12:25:26 ET
Epiroc AB (publ) (EPOKY)
Q1 2024 Results Conference Call
April 23, 2024 04:00 AM ET
Company Participants
Karin Larsson - Vice President, Investor Relations and Media
Helena Hedblom - President and Chief Executive Officer
Hakan Folin - Chief Financial Officer
Conference Call Participants
John Kim - Deutsche Bank
Klas Bergelind - Citi
Christian Hinderaker - Goldman Sachs
Edward Hussey - UBS
Anders Idborg - ABG
Benjamin Heelan - Bank of America
Vlad Sergievskii - Barclays
Mattias Holmberg - DNB
Olof Larshammar - Danske Bank
Presentation
Karin Larsson
Hello, and a warm welcome to the Epiroc Q1 results presentation. My name is Karin Larsson, Head of Investor Relations and Media here at Epiroc. And with me today to present the results, I have our CEO, Helena Hedblom; and our CFO, Hakan Folin. And today, before we start, I would like to highlight three things. Number one, don't forget to register to our CMD on September 24 in Las Vegas. More than half of the seats have already been taken.
Number two, we have made several improvements in our key figures filed online, including an adjusted EBIT bridge. And hopefully, the increased transparency can help you all make even better investments decisions in the future. And three, and this is the last quarter, we will speak about orders on hand, i.e., order book impacting the structure in the sales bridge. Onwards, when we acquire companies, we will only add actual orders received in the quarter. So with this said, Helena, please? The stage is yours.
Helena Hedblom
Thank you, Karin. So let me start with some highlights of the quarter. So on the customer side, the first quarter was very similar to previous quarters. Mining activity is high, which is reflected in a strong service business and a high demand for rock drilling tools. The large orders are, as we have said before, lumpy. And we received fewer large orders in Q1 than we did in -- we did last year.
We do not see this as a change in demand. On the contrary, there is a lot of business cooking and the pipeline of potential large orders is solid. The construction demand was weak, and again, this was reflected in the demand for hydraulic attachments. We are increasing our focus on profitability. We are not happy with the level we are at. But we have taken action.
And sequentially, we have achieved structural savings in SG&A. Our cash flow improved.
The working capital is still at levels that we are not satisfied with, mainly due to high inventories of finished goods of equipment. And that is machines ordered by and on its way to customers around the world. We are increasing capacity in customer centers to speed up final modification to shorten delivery time and improve invoicing. And on April 1, we finalized the acquisition of STANLEY Infrastructure, which will position us for construction growth in the future. So more on this later on....
Epiroc AB (publ) (EPOKY) Q1 2024 Earnings Call Transcript