Brock comments on Atlas Copco’s Q2 results
July 17, 2006
Stockholm, Sweden, July 17, 2006: Atlas Copco has today reported yet another quarter with record results. ”All business areas improved sales, profits, and margins,” says Gunnar Brock, President and CEO. ”The demand has been favorable and we believe that it will remain on the current high level for most customer segments during the coming months.”
The divestment process of the construction equipment rental business, the Rental Service business area, continues and Atlas Copco expects to sign an agreement during the third quarter. The order intake for the Atlas Copco Group*) increased 19% to MSEK 16 526 (13 838) during the second quarter, a volume increase of 13% for comparable units. Revenues were MSEK 15 408 (13 062). Operating profit was up 41% to MSEK 3 163 (2 241), a margin of 20.5% (17.2). Profit before tax increased 35% to MSEK 2 926 (2 170). Atlas Copco has recently announced acquisitions of U.S.-based BeaconMedaes, a provider of medical air systems, and Italian ABAC, a leading manufacturer of piston compressors. “The acquisition of BeaconMedaes takes Atlas Copco into the profitable and growing medical equipment segment while the purchase of ABAC is highly complementary to Atlas Copco’s product portfolio and multibrand strategy.” In parallel to the acquisitions, Atlas Copco is continuously making investments in its existing operations. The Group has recently opened two new factories in China, one for compressors and one for drill rigs, and it is on the point of making significant investments in the manufacturing units for hydraulic breakers and compressors. *) Information regarding the continuing operations is published in Atlas Copco Q2 report. For further information please contact: Mattias Olsson, Investor Relations manager +46 (0)8 743 8291 or +46 (0)70 518 8291 Annika Berglund, Senior Vice President Corporate Communications +46 (0)8 743 8070 or +46 (0)70 322 8070 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 2005, Atlas Copco had 27 000 employees and revenues of BSEK 53 (MEUR 5 600). Learn more at www.atlascopco.com.