Epiroc AB SWOT and PESTLE Analysis
COMPANY PROFILE -Epiroc AB
Business Sector :Mining and Infrastructure Equipment
Operating Geography :Sweden, Europe, Global
About Epiroc AB :
Epiroc AB produces machinery for both mining and infrastructure. Stockholm, Sweden is home to the company's headquarters. Manufacturing facilities are located in Germany, Sweden, the US, Canada, Australia, China, India, and Japan. Founded in Stockholm in 1873, Atlas Copco is where Epiroc got its start. Epiroc was formally established in January 2018, as a result of Atlas Copco's decision to separate apart its heritage mining equipment business. It designs, produces, and sells rotary drilling equipment for a range of uses, including exploration, building, mining, water wells, and shallow oil and gas, all over the world. The business also provides tunnelling and mining equipment for both above- and below-ground uses, as well as rock and exploratory drilling equipment. Among other things, Epiroc offers services in mining and rock excavation, replacement parts supply, expert service, consulting and engineering, support solutions, and training. In June 2022, Boliden made a sizeable order with Epiroc for mining equipment, which would be utilised in several of the company's underground mines in Sweden. The contract includes battery-electric and automation systems.
The unique selling proposition of Epiroc is that it is a premier partner in productivity and sustainability for the infrastructure and mining sectors. The mission statement of Epiroc reads, "to be the leading global productivity partner and to deliver profitable growth. To achieve this mission, our strategy is focused on five areas – Innovation and expertise, Safety and sustainability, Presence and penetration, Operational and service excellence, and People and Leadership".
Epiroc AB Revenue :
SEK 39,645 million - FY ending 31st December 2021 (y-o-y growth 10%)
SEK 36,122 million - FY ending 31st December 2020
Competitive Analysis of Epiroc AB
Strengths | Weaknesses |
1. Has a strong and even global presence 2. Epiroc has a strong financial position 3. Epiroc has a high proportion of recurring business 4. Epiroc has seen continuously created value for its shareholders 5. Epiroc has a strong well-proven business model | 1. Epiroc’s clients are majorly involved in environmentally risky businesses 2. Substantial number of orders received are in local currency and impacts the company’s revenue |
Opportunities | Threats |
1. Epiroc is well positioned to take advantage of the increase demand for low carbon products 2. The after-market business for mining equipment estimated to grow at 5% CAGR | 1. Highly competitive market where competitors are continuously consolidating 2. High susceptibility to cyberattacks 3. Market is too dependent on general economic conditions and mining commodity prices |
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Detailed SWOT Analysis of Epiroc AB
Strength
1. Has a strong and even global presence: Epiroc carries out sales activities in more than 150 countries around the globe across six continents. Its revenue is more and less spread evenly across these continents. North America accounts for 21% and Europe accounts for 24% of the total company’s total revenue. Middle East and Africa combinedly contributes 14% to the company’s revenue, whereas South America contributes 13% to the total revenue. Rest of Asia and Australia combinedly account for 28% for the company’s revenue. The company’s workforce is also strongly distributed around the globe. The distribution of its workforce is in the following way: Europe has 32% of all the workforce of Epiroc, North America accounts for 22% of the workforce, South America has 9% of the workforce, Africa and Middle East have 17% of the workforce, and Asia and Australia have 27% of the workforce.
2. Epiroc has a strong financial position: Epiroc has seen its revenue grow continuously steadily over the last 6 years with an exception of the Covid pandemic hit year 2020. The revenue was SEK 28,663 million in 2015 which increased to SEK 39,645 million in 2021. The gross profits have also increased over the last 6 years except in the year 2020 but the gross profits margin as a percentage has increased throughout the last 6 years. The profits over the last six years have increased by more than 50% from SEK 10,200 million in 2015 to SEK 15,453 million in 2021. The gross margin as a percentage has increased from 35.6% in 2015 to 39.0% by 2021. The company has also bettered or match all its financial goals. The overall profit for the company has also increased by 50% from SEK 3,571 million in 2015 to SEK 7,069 million in 2021.
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Weakness
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Opportunity
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Threat
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Major Competitors :
- Caterpillar
- Komatsu
- Sandvik
- FLSmidth
- Bauer
- Boart Longyear
Major Brands :
- Drill Rigs
- Excavator attachments
- Loaders and trucks
- Mechanical rock excavation equipment
- Raiseboring equipment
- Rock drilling tools
- Ventilation systems
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Epiroc AB SWOT & PESTLE Analysis Report
1. Annual Report - https://www.epirocgroup.com/content/dam/epiroc/corporate/documents/investors/annual-report/2022/Annual%20and%20Sustainability%20Report%202021.pdf
2. Strengths and goals - https://www.epirocgroup.com/en/investors/strengths-and-goals
3. Mining companies flag rising inflation in Q3'21, climbing costs into 2022 - https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mining-companies-flag-rising-inflation-in-q3-21-climbing-costs-into-2022-67745078
4. What Is Biting Your Wallet: Post-COVID-19, Stretched Supply Chains and High Raw Material Costs - https://thewire.in/economy/what-is-biting-your-wallet-covid-19-stretched-supply-chains-high-raw-material-costs
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Epiroc AB SWOT and PESTLE analysis has been conducted by Sohil Sankalp and reviewed by senior analysts from Barakaat Consulting.
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