Gunnar Brock comments on Atlas Copco’s Q2 results
- 14 September 2008
- Financial News
Stockholm, Sweden, July 18, 2008: Atlas Copco today reported second-quarter results with continued strong order growth across all business areas and regions. "The growth has been particularly strong in emerging markets and in the mining industry," says President and CEO Gunnar Brock.
"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.
Revenues during the quarter were up 18% to MSEK 18 884 (15 985), an organic growth of 15%. Operating profit reached a record level of MSEK 3 630, up 20%, corresponding to a margin of 19.2% (19.0). "Price increases, increases in sales volume and efficiency gains have more than offset cost increases on components and negative currency effects."
In line with the 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. We are now enhancing our marketing efforts to promote these leading solutions to existing and prospective customers."