Krister Blomgren, CEO of Engcon Group

Oct 20, 2021 09:30 BST

Engcon increases profitability andremains market leader

The construction and contractors sector in 2020 suffered both a loss ofturnover and as a consequence, reduced profits. The world-leading tiltrotatormanufacturer Engcon also had a reduction in turnover, but still managed todeliver better results compared to 2019, which means improved profitabilityfor the Engcon group.

For the Engcon Group in 2020 there was a marginal reduction in net sales toapproximately: SEK 1.23 billion (2019: SEK 1.35 billion).

At the same time, operating profit landed at SEK 218 million (2019: SEK194.6), which means an improved profit margin of just over 3,5 percent.

“Before the pandemic hit, we estimated that 2020 had the potential to beanother record year in turnover and potential profit, but in connection withthe economic downturn, we had to readjust and deal with the pandemic andits effects. Just as for 2019, we made sure that our offensive establishmentstrategy in the non-Nordic markets addressed any potential decrease inturnover, but above all our overall result means that during the pandemic weimproved our profitability”, says Krister Blomgren, CEO of Engcon Group, andcontinues:

“At the same time, we are entering a new phase, where we need to beprepared to manage an increase in demand and higher costs to meet thisdemand”.

Blomgren: "Proud of our employees"Engcon continues to work based on an offensive growth strategy, wheremarkets such as North America, Asia and Australia contributed to bothrevenues and profitability during 2020. These are also countries where theexcavator market is forecast to increase sharply over the next three years.

“Another reason why Engcon came through the pandemic year 2020 in suchgood shape was because of our employees. Despite a tough year that placedhigh demands on all of us, our employees have stepped forward and shownproof of their loyalty and drive. I am extremely proud to see how hardeveryone has worked for us to remain number one and continue to improveeveryday life for all excavator operators out there in the world. It is thanks tothis work that we are now strong enough to meet a regrowth and increaseddemand in the global market”, Krister Blomgren concludes.

Comparative figures with competitors show that Engcon continues to wearthe leader's jersey when it comes to turnover, market share and results.

About engcon

Engcon, founded in 1990, is the world leader in the manufacture oftiltrotators and their attachments, which increase the efficiency, profitability

and safety of excavators. The parent company is located in Strömsund innorthern Sweden. Through its local sales companies supplies products andservices in Finland, Norway, Denmark, France, North America (US andCanada), Benelux, UK, Germany and most recently in Korea and Australia.Engcon also exports tiltrotators worldwide from Sweden. In 2020, EngconGroup achieved approx. £105 million in sales with 300 employees. www.engcon.com

Contacts

Sten StrömgrenPress ContactCommunications Managersten.stromgren@engcon.se +46 70 529 96 32