Interim report on Q4 and full-year 2008 summary
- 08 March 2009
- Financial News
Tough end to a record year
- Organic order intake declined 19% following significant drop in world-wide demand.
- Continued aftermarket growth in all business areas.
- Revenues up 12% to MSEK 19 731 (17 549), organic growth 3%.
- Operating profit reached MSEK 3 288 (3 361).
- Adjusted operating margin at 18.0% (19.3)
- Positive currency effect of MSEK 350 compared to previous year.
- Profit before tax amounted to MSEK 3 508 (2 134).
- Profit for the period was MSEK 2 919 (1 376).
- Basic and diluted earnings per share were SEK 2.39 (1.12).
- Operating cash flow was MSEK 2 401 (926).
- The Board proposes a dividend of SEK 3.00 per share.
Near-term demand outlook
The current economic situation makes the outlook very uncertain but demand is expected to remain very weak in most industries and regions.
Measures to adapt capacity and costs
The fourth quarter's actions to adapt capacity and costs to the rapidly deteriorating business environment led to a reduction of employees with about 1 350 in total, and MSEK 258 in redundancy costs. Further reductions will take place, affecting more than 3 000 people globally. Associated redundancy costs are estimated to about MSEK 400, most of which will be affecting the first quarter of 2009. The total reductions in work¬force are expected to give about MSEK 2 000 in annual saving.
Gunnar Brock comments on Atlas Copco's Q4 results
Stockholm, Sweden, February 2, 2009: Atlas Copco today reported increased revenues for the fourth quarter, while the global economic downturn led to a sharp decline in order intake. Actions to reduce capacity and costs were implemented during the quarter.
Revenues during the fourth quarter increased 12% to MSEK 19 731, with organic growth of 3%. The organic decline in order intake was 19%. Operating profit reached MSEK 3 288 (3 361), corresponding to an operating margin of 16.7% (19.2%). Excluding redundancy costs of MSEK 258, the profit was MSEK 3 546, or 18.0%.
"Overall, we are pleased with our financial performance during the quarter, and we have acted quickly and decisively in adapting to the rapid and substantial decline in demand, particularly within the mining industry," says President and CEO Gunnar Brock. "Our businesses have already achieved a great deal and their work will continue throughout 2009."
During the quarter, the workforce was reduced by about 1 350 people, affecting all three business areas, and other cost saving measures were introduced.
"The current economic situation makes the outlook very uncertain but demand is expected to remain very weak in most industries and regions in the near term," Gunnar Brock says. "The government stimulus packages recently introduced, primarily aimed at infrastructure projects, are expected to give support for construction equipment demand."
Atlas Copco expects continued growth in demand for service, spare parts and consumables. All business areas recorded growth in the aftermarket during the fourth quarter.
Atlas Copco AB's Board of Directors is proposing to the Annual General Meeting an unchanged dividend to the shareholders of SEK 3.00 per share, corresponding to 36% of earnings per share (49%).