Engcon increases profitability and maintains position as market leader

The construction industry suffered from both lost sales and lower profits, according to 2020 figures. Leading turntable manufacturer Engcon also had slightly lower sales. However, Engcon is going against the grain and showing improved results, which means improved profitability for the group.

Engcon Group reports a marginal decline in net sales for the 2020 pandemic year, which came in at SEK 1.23 billion (2019:SEK 1.35 billion). Operating income came in at SEK 218 million (2019: SEK 194.6), representing an improved profit margin of just over 3.5 percent.

"Before the pandemic hit, we estimated that 2020 had the potential to be another record year in both sales and earnings potential. However, as the economy slowed, we shifted gears to deal with the pandemic and its effects. As in 2019, we see that our offensive establishment strategy in non-Scandinavian markets helped keep sales from falling even further. We were able to improve our profitability during the pandemic," said Krister Blomgren, CEO of Engcon Group, continuing:

"At the same time, we are entering a new phase where we have to deal with both increased demand and increased costs to meet the same demand. Then it is only right that we are already prepared for this".

Blomgren: "Proud of our employees"

Engcon continues on an aggressive growth strategy, with markets such as North America, Asia and Australia contributing to both revenue and profitability in 2020. These are also markets where the excavator market is expected to grow significantly over the next three years. Another factor that contributed to how Engcon got through the 2020 pandemic year was all its employees.

"Despite a tough year that placed high demands on all of us, our employees went the extra mile and showed both loyalty and strength to act. I am immensely proud to see how hard everyone has worked to stay out of trouble and continue to improve the daily lives of all excavators around the world. Thanks to this commitment, we are now strong enough to return to growth and meet the increased demand in the global market," concludes Krister Blomgren.

Comparative figures from competitors show that Engcon continues to wear the leader's jersey when it comes to revenue, market share and profitability.