Atlas Copco Second quarter report 2005 (unaudited)

July 18, 2005

Record sales and profits

Very strong performances by all business areasOrders received up 24%, up 11% in volume.Revenues reached MSEK 13 062 (10 680), up 10% in volume.Operating profit increased 45% and the margin reached 17.5% (14.8).Profit after financial items increased 42% to MSEK 2 128 (1 502).Net profit was MSEK 1 461 (1 112) and earnings per share SEK 2.32 (1.76). The expected capital gain from the divestment of the professional electric tools business is not included. Final closing balance will be decided in arbitration. Operating cash flow totaled MSEK 955 (774). Net cash flow, including share redemption, amounted to MSEK -4 366.Near-term demand outlook  The demand for Atlas Copco's products and services is expected to remain at a high level.  Demand from manufacturing and process industries is expected to stay favorable. Activity in the construction industry is expected to continue to increase somewhat. Demand from the mining industry is expected to remain strong.