Atlas Copco this week reported revenues in the second quarter of 2011 increased 14 percent to SEK 19.95 billion (about U.S. $3.04 billion) from SEK 17 430 (U.S. $2.65 billion) in the year-ago period. The company recorded a 27-percent leap in organic revenue growth and a record-high quarterly operating profit of SEK 4.18 billion (U.S. $635.9 million), a 19-percent leap from SEK 3.50 billion in 2Q10. Operating profit was affected negatively by currency effects of SEK 915 million (U.S. $139.3 million), or almost two percentage points compared to the previous year.
“Our deliveries and invoicing levels are improving and we are proud to again report a record profit for the quarter,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “We also achieved a strong operating margin, even with significant currency headwind.”
Demand was good in all business areas and the group continued to make investments in sustainable, profitable growth.
“We continued to develop our global market presence and product portfolio through investments and add-on acquisitions,” Leten said. “Atlas Copco’s new business area structure, which came into effect on July 1, will support our long-term, profitable growth and drive further innovations for our customers’ increased productivity.”
Atlas Copco in May announced it will invest MSEK 160 (U.S. $24.4 million) in building a new factory for compressors in India. Other notable events during the quarter included significant orders from Saudia Arabia and Mexico and the launch of new products, such as a large silent demolition cutter and Atlas Copco’s most energy-efficient oil-free compressor yet.
“The overall demand for the group’s products and services is expected to remain at the current high level,” Leten said.
The company reported basic earnings per share in the quarter of SEK 2.46 (U.S. $0.37), a 12-percent increase from SEK 2.07 for 2Q10.
Based in Stockholm, Sweden, Atlas Copco produces compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. For more information, visit www.atlascopco.com.