Atlas Copco last week reported that revenues increased 6 percent organically year on year to SEK 22.1 billion (about U.S. $3.3 billion) from SEK 20.7 billion in the same period of 2011. Operating profit was SEK 4.92 billion (U.S. $735.3 million) compared to SEK 4.8 billion in 3Q11, corresponding to an operating margin of 22.3 percent. Orders received increased 1 percent organically to SEK 21.4 billion (U.S. $3.2 billion) from SEK 21.2 billion. Compared to the most recent quarters, demand for equipment declined somewhat while demand for services remained on a good level.
“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.”
Basic earnings per share in the third quarter were SEK 2.87 (U.S. $0.43) compared with SEK 2.96 in the third quarter of 2011.
“In the near term, the overall demand for Atlas Copco’s products and services is expected to decrease somewhat,” 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.”
During the quarter, Atlas Copco acquired U.S.-based NewTech Drilling Products, and decided to reorganize the production of road construction equipment in Karlskrona, Sweden.
“We will continue to put a strong focus on operational excellence and cost control, and will adapt our capacity where such measures are necessary,” Leten said. “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.”
Atlas Copco produces compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. It is based in Stockholm, Sweden.
