Atlas Copco: Ronnie Leten Comments on Atlas Copco's Q3 Results
Atlas Copco (STO:ATCOA)(STO:ATCOB) today reported a good operating profit and growing revenues and orders received for the third quarter, despite softening demand for equipment in many markets and customer segments.
“We are pleased with the profitability we have achieved and with how sales developed considering the mixed market conditions,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “The Atlas Copco organization stands ready to perform well also in a more difficult situation.”
Revenues increased 6% organically year-on-year to MSEK 22 094 (20 739) and the operating profit was MSEK 4 918 (4 800), corresponding to an operating margin of 22.3% (23.1). Orders received increased 1% organically to MSEK 21 379 (21 151). Compared to the most recent quarters, demand for equipment declined somewhat while demand for services remained on a good level.
“In the near term, the overall demand for Atlas Copco's products and services is expected to decrease somewhat,” Ronnie Leten said. “Especially in these tougher market conditions it is important that we work closely with our customers to ensure we fully realize our sales and service potential.”
Important events during the quarter include the acquisition of U.S. based NewTech Drilling Products, and a decision to reorganize the production of road construction equipment in Karlskrona, Sweden. Atlas Copco also launched a number of new products, and gave visitors to the MINExpo in Las Vegas a preview of the world's largest articulated underground mining truck.
“We will continue to put a strong focus on operational excellence and cost control, and will adapt our capacity where such measures are necessary. At the same time we are always prepared to invest in areas where we see opportunities for sustainable, profitable growth. Research and product development, as before, remain a priority for Atlas Copco, whatever the market conditions,” Ronnie Leten said.
Atlas Copco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
Atlas Copco is an industrial group with world-leading positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. With innovative products and services, Atlas Copco delivers solutions for sustainable productivity. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2011, Atlas Copco had 37 500 employees and revenues of BSEK 81 (BEUR 9). Learn more at www.atlascopco.com.
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