Atlas Copco Second-Quarter Revenue Declines 2 Percent

July 19, 2013

Atlas Copco last week reported revenues for the second quarter of 2013 declined 2 percent to SEK 21.84 billion (U.S. $3.32 billion) from SEK 23.43 billion in the same period a year ago. Operating profit was SEK 4.53 billion (U.S. $6.88 billion), a 10-percent decline from SEK 5.03 billion a year ago, corresponding to a margin of 20.8 percent.   

Compared with a year earlier, orders received decreased 5 percent organically to SEK 21.14 billion (U.S. $3.21 billion), though the company noted there is a healthy demand for service and industrial equipment and said near-term demand is expected to remain at the current level.

“We see a continuous solid development of the service business, and stable demand for our industrial equipment,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “The demand for mining equipment continued to be soft.”

During the second quarter, Atlas Copco acquired compressor distribution in the United States, and completed acquisitions of shotcreting company MEYCO Equipment in Switzerland, as well as of torque wrench makers Saltus-Werk Max Forst in Germany and Rapid-Torc in the U.S.

“We are devoted to enhancing our customers’ productivity by investing in service and in new innovative products,” said Leten. “I’m proud to see a solid flow of great products coming out of our innovation centers around the world.”

Basic earnings per share in the second quarter were SEK 2.58 (U.S. $0.39) compared to SEK 2.98 in the Q212.

Stockholm, Sweden-based Atlas Copco produces compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems.