Strong Q3 expected, Russian CE market still hot
We expect Q3 sales of SEK 1,520m, up 35% y-o-y (+35% org, -2% FX, +2% M&A), and adj. EBIT of SEK 126m for a margin of 8.3% (9.5%). In Q3, the Russian construction equipment (CE) market grew by an impressive 40% y-o-y, which according to the AEB stems from a modernisation trend in the Russian CE fleet. However, we estimate a slight underperformance vs. the market due to: 1) Ferronordic’s tendency to lose some market share when the market is booming and 2) international players likely having a harder time dealing with supply chain issues than local Russian players. That said, Q3 is still looking to be a strong quarter, with further sequential improvement in Contracting Services (CS) with the Norilsk project operating at full capacity while Irkutsk is ramping up. Also, we expect the strong FX headwinds of the previous four quarters to ease.
LÄS MER
