Stockholm, Sweden-based Atlas Copco last week reported second-quarter results with continued strong order growth across all business areas and regions, particularly in emerging markets and the mining segment. Revenues during the quarter were up 18 percent to SEK 18.9 billion (about U.S. $3.2 billion) from SEK 15.9 (U.S. $2.7 billion) a year ago, an organic growth of 15 percent.
Operating profit reached a record level of SEK 3.6 billion (U.S. $607.1 million) from SEK 3.0 billion (U.S. $507.9 million) in the year-ago period, up 20 percent, corresponding to a margin of 19.2 percent.
“Price increases, increases in sales volume and efficiency gains have more than offset cost increases on components and negative currency effects,” said Gunnar Brock, president and CEO. “We believe that the overall demand for Atlas Copco’s products and services will remain at a high level in the near term, primarily because of a continued strong demand development in emerging markets and the mining industry.”
Some customer segments in North America and Western Europe, related to consumer goods and residential construction, are expected to weaken, the company said.
In line with its strategy, Atlas Copco continues to improve its efficiency. To strengthen the long-term cost competitiveness of Industrial Technique, the business area will close a factory in Great Britain and transfer the production to Hungary.
Through strategic acquisitions, Atlas Copco has further improved its product offering and market presence. In the quarter, the group acquired a high-pressure compressor manufacturer in the United States focusing on the oil- and gas industry, two former compressor distributors in the United States, and two service companies active in the Indonesian mining sector.
Minimizing the use of energy is a focus area and the sales of energy-efficient products continued to increase in the quarter.
“Atlas Copco’s continuous shift towards more energy-efficient compressors and services has resulted in reduced energy consumption in compressed-air installations,” Brock said. “We are now enhancing our marketing efforts to promote these leading solutions to existing and prospective customers.”
Stockholm, Sweden-based Atlas Copco is an international provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental.