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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

SEK 435 mln

Q3 Net Income

SEK 69 mln

Q3 Operating Margin

19.90%

Q3 Operating Profit

SEK 86 mln

Q3 Orders

SEK 424 mln


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%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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