Atlas Copco last week reported third-quarter revenues increased 18 percent to SEK 17.74 billion (about U.S. $2.67 billion) from SEK 15.09 billion (U.S. $2.27 billion) in the third quarter of 2009. Operating profit increased 57 percent to SEK 3.78 billion (U.S. $569.0 million) from SEK 2.40 billion (U.S. $361.4 million) a year ago, including restructuring costs of SEK 100 million (U.S. $15.0 million). Operating margin was a record high at 21.3 percent from 15.9 percent in the year-ago period.
Organic orders received increased 35 percent to SEK 19.32 billion (U.S. $2.91 billion) from SEK 14.31 billion (U.S. $2.15 billion) and revenues increased 18 percent organically to SEK 17.74 (U.S. $2.67 billion). Sequentially, sales of mining and industrial equipment improved while the order intake for construction equipment weakened somewhat. Operating profit increased to a new record of SEK 3.78 billion (U.S. $569.0 million) from SEK 2.40 billion (U.S. $361.4 million) in the same period of 2009, corresponding to an operating margin of 21.3 percent including restructuring costs.
“Better market penetration, new innovative products and a fantastic development for our aftermarket business, combined with a further enhanced customer focus has paid off,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “I am particularly pleased to see that our energy-efficient solutions and our service offering have gained solid ground at customers in the emerging markets.
“We received some very large orders for mining and tunneling equipment from Kazakhstan and India and a major compressor order for the pipeline industry in Russia. These orders show a strong confidence in Atlas Copco’s products and services.”
In the quarter Atlas Copco acquired an Austrian mobile crushing operation, a Dutch biogas treatment company and a British drilling equipment company. In addition, a new customer center was inaugurated in Panama and new distribution centers were established in the Group’s two largest markets — United States and China. The company also acquired a tool distributor in the U.S. to further penetrate the market.
Atlas Copco is an industrial group with leading positions in compressors, construction and mining equipment, power tools and assembly systems.
