Atlas Copco this week reported first-quarter revenues for the period ended March 31, increased 27 percent to SEK 18.22 billion (about U.S. $2.90 billion) from SEK 15 301 (U.S. $2.44 billion) in the same period last year. Orders received grew 33 percent organically to SEK 21.68 billion (U.S. $3.45 billion), a new record.
Operating profit in the first quarter increased 52 percent to SEK 3.99 billion (U.S. $635.3 million) from SEK 2.63 billion in the year-ago quarter, corresponding to a record margin of 21.9 percent. The margin was positively affected by efficiency improvements, growing volumes and price increases, while changes in currency exchange rates had a negative impact of about one percentage point.
“We have achieved a great result, thanks to the good global demand situation, our improved market presence in China and India, investments in products and services, and the hard work of our employees to strengthen the support for our customers,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “We faced big challenges in the quarter with the turmoil in northern Africa and the Middle East, and the tragic events in Japan. We’re glad that our businesses are adapting well and that all of our employees are safe.”
Profit for the first-quarter 2011 was SEK 3.03 billion (U.S. $483.3 million), from SEK 1.86 billion in the same period a year ago. Basic earnings per share were SEK 2.48 (U.S. $0.40), and improvement from SEK 1.53 in 1Q10.
The company said it expects overall demand for its products and services to increase somewhat. The demand in the emerging markets as well as from the mining industry is expected to stay strong. Most other markets, except southern Europe and northern Africa, are expected to continue to develop positively.
Atlas Copco, in Stockholm, Sweden, is an industrial group that produces compressors, construction and mining equipment, power tools and assembly systems.