Business in 2019
Stability, profitability, growth
All our divisions are profitable and are in the growth phase. We completed two acquisitions in 2019 that will further grow our capabilities within digitalization and electrification. In February we acquired US-based Artisan Vehicle Systems, a manufacturer of battery electric-powered mining vehicles. With this acquisition we now have the biggest fleet of battery-operated vehicles in underground mines in the industry. In June we completed the acquisition of Canadian-based Newtrax, a supplier of technology in wireless connectivity to monitor and provide insights on underground mining operations.
Efficiency and continuous improvements
Our focus on agile and efficient execution includes driving internal efficiencies through a decentralized structure. To be agile in market upturns and downturns, we have set up a flexible manufacturing system using both inhouse and subcontracted manufacturing resources. We continue to drive efficiencies across the business area through tough performance targets and execution milestones for each performance unit.
2019 in figures
Commodity exposure
Revenues by market area
MSEK |
2018 |
2019 |
||||
|---|---|---|---|---|---|---|
|
||||||
Order intake |
41,842 |
44,379 |
||||
Revenue |
41,058 |
44,777 |
||||
Operating profit |
7,452 |
8,602 |
||||
Operating margin, % |
18.2 |
19.2 |
||||
Adjusted operating profit1) |
7,542 |
8,911 |
||||
Adjusted operating margin, % |
18.4 |
19.9 |
||||
Return on capital employed, % |
33.9 |
32.3 |
||||
Number of employees2) |
14,397 |
14,229 |
||||
Gender balance (Men/Women), % |
84/16 |
84/16 |
||||
Women in managerial positions, % |
16.2 |
17.0 |
||||
Lost time injury frequency rate (LTIFR) |
0.99 |
0.62 |
||||
Total recordable injury frequency rate (TRIFR) |
4.0 |
3.4 |
||||
Sustainable business
Our biggest sustainability impact is through our offering, which helps our customers increase productivity and thereby become more sustainable. We are doing this by developing products and solutions that require less fuel and electricity, automating mining equipment for better productivity and durability, and developing products and solutions that contribute to a safer and healthier work environment. In addition, we drive recycling programs, notably within cemented carbide and manganese alloys. In 2019 we continued working towards healthier mines through electrification and strengthened our offering in the area through the acquisition of Artisan Vehicle Systems.
We were able to reduce our Lost Time Injuries (LTI) in our own operations by a third, from 0.99 to 0.62 per million hours worked. The 2019 target was 0.8.
Looking ahead
The demand for productivity and sustainability improvements from mining customers will continue to grow. To optimize our customers’ operations we will maintain our focus on a combination of advanced connected equipment and leading application expertise that makes it possible to maximize production output and minimize resource usage. Our leading offerings in automation and electrification will also result in further productivity and sustainability improvements within the industry.