(Reuters) -Sweden's Epiroc reported first-quarter operating profit slightly below market expectations on Tuesday and said construction demand is expected to remain weak in the near term. Epiroc, which
Epiroc's Q1 Profit Falls Short of Market Expectations
(Reuters) -Sweden's Epiroc reported first-quarter operating profit slightly below market expectations on Tuesday and said construction demand is expected to remain weak in the near term.
Epiroc, which makes drill rigs, rock excavation and construction equipment among others, reported quarterly operating profit of 3.09 billion Swedish crowns ($321.2 million), up from 2.76 billion crowns a year earlier.
Analysts, on average, had expected profit of 3.13 billion crowns, per data compiled by LSEG.
Epiroc's first-quarter order intake increased 17% year-on-year to 16.59 billion crowns.
Organically, orders rose 10%, while its large equipment order levels were higher than the comparable period, it said.
The company also said it expects near-term underlying mining demand, both for equipment and aftermarket, to remain high, contrasting its weaker construction demand forecast.
"We are closely monitoring market developments and have already started to optimize logistics and distribution flows, leverage our global manufacturing footprint, explore alternative suppliers, as well as discuss potential pricing impact with customers," CEO Helena Hedblom said in an earnings statement.
($1 = 9.6201 Swedish crowns)
(Reporting by Elviira Luoma; Editing by Varun H K)
