Atlas Copco last week reported third-quarter results with revenues and operating profit margin at new record levels. Revenues in the quarter increased 21 percent to SEK 20.7 billion (about U.S. $3.1 billion) from SEK 17.7 billion (U.S. $2.7 billion) and the operating profit was SEK 4.8 billion (U.S. $723.4 million) from SEK 3.8 billion (U.S. $570 million), corresponding to an operating profit margin of 23.1 percent.
“Our performance in the third quarter was very strong and we achieved good growth figures, especially in the United States and China,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “Since July we have been operating with four business areas and have already started adapting the structure of some customer centers, which will help us drive organic growth.”
Demand remained on a high level, with strong growth in the aftermarket business. In the near term, the overall demand is expected to weaken somewhat from the current high level.
“Considering the softening we have seen in the construction industry and the generally uncertain market situation, we have reviewed our contingency plans,” Leten said. “We are confident that our operations are fit and well prepared, however the market develops.”
Atlas Copco has recently announced four company acquisitions, including that of SCA Schucker, a Germany-based manufacturer of adhesive equipment. This acquisition presents new growth opportunities as many car manufacturers and aerospace companies increasingly use light-weight materials.
“We will continuously review potential acquisitions to add new technologies, but it is even more important that we remain focused on product development and innovation,” said Leten.
Based in Stockholm, Sweden, Atlas Copco is an industrial group with global positions in compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems.