Sweden's Engcon Q3 operating profit rises 23% on favourable currency effects

Overview

• Sweden tiltrotator supplier's Q3 net sales rose 5% yr/yr, order intake fell 9%

• Operating profit for Q3 increased 23% yr/yr, operating margin improved to 19.9%

• CEO cites mixed market conditions, with growth in Sweden and the Netherlands, weakness in France

Outlook

• Company says market developments remain mixed, with both stable and unexpectedly weak regions

• Engcon is focusing on growing sales and adapting products to market conditions

• Company is retaining capacity and expertise to meet demand when it picks up

Result Drivers

• CURRENCY EFFECTS - CEO said favourable currency effects played a big part in higher operating profit

• COST EFFICIENCY - CEO said a slight improvement in cost efficiency contributed to higher operating profit

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Engcon AB is SEK83.00, about 11.6% above its October 28 closing price of SEK74.40

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Oct 27 - Sweden's Alfa Laval Q3 sales rise on order intake

• Oct 28 - Sweden's Epiroc Q3 revenue up 10% on mining demand

• Oct 28 - Finland's Kone Q3 sales rise 5.2%, orders up 7.2%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)