Gunnar Brock comments on Atlas Copco’s Q2 results
- 05 August 2007
- Financial News
"Our record performance manifests the strength of our three business areas," says Gunnar Brock, President and CEO. "They all have very solid market positions and highly profitable growth strategies in place."
Atlas Copco has now achieved 21 consecutive quarters with organic growth. "We expect that demand from most customer segments will remain at the current high level in the near term."
Atlas Copco's revenues increased 28% to MSEK 15 985, corresponding to an organic growth of 20%. The operating profit was up 30% to MSEK 3 037, corresponding to a margin of 19.0% (18.8). "For the first time ever, our operating profit has exceeded 3 billion SEK."
During the quarter, Atlas Copco finalized the acquisitions of Dynapac, a leading supplier of compaction and paving equipment for road development, and ABAC, a manufacturer of piston compressors for the small and medium sized industrial market, and for the automotive aftermarket.
Whilst selective acquisitions are an integral part of the Group's growth strategy, the main focus is on organic growth. New products and solutions are continuously introduced to the market. Recently, Atlas Copco launched a new range of oil-free compressors for outdoor usage, the largest volume-produced hydraulic breaker in the world and a new generation of electric nutrunners, with higher speed and torque than the previous generation. "These, and all other product introductions we make, are a result of dedicated investments to increase our customers' productivity."
In order to meet anticipated future demand growth, and to improve efficiency, Atlas Copco has decided to invest in increased production capacity both in the Compressor Technique and Construction and Mining Technique business areas.
Atlas Copco is a world leading provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. In close cooperation with customers and business partners, and with more than 130 years of experience, Atlas Copco innovates for superior productivity. Headquartered in Stockholm, Sweden, the Group's global reach spans more than 150 markets. In 2006, Atlas Copco had 25 900 employees and revenues of BSEK 51 (BEUR 5.6). Learn more at http://www.atlascopco.com/.