Brock comments on Atlas Copco’s Q3 results
October 24, 2006
Stockholm, Sweden, October 24, 2006: Today Atlas Copco reported its results for the third quarter 2006. “We continue to grow very strongly and very profitably,” says Gunnar Brock, President and CEO of the Atlas Copco Group. “In the third quarter we achieved double-digit growth in all regions and the after-market business developed favorably for all business areas.”
During the quarter, Atlas Copco announced an agreement to sell the majority of its construction equipment rental business, in a deal with a total value of approximately BSEK 28 in cash and securities. The transaction is expected to close before the end of 2006. “Going forward, Atlas Copco has three powerful and profitable industrial business areas, all with leading global market positions. They are unified and strengthened through the sharing of brand names, resources and processes, and have continued excellent opportunities for very profitable growth and value creation.” Orders received for Atlas Copco’s continuing operations increased 21% to MSEK 13 847 (11 452) in the third quarter, up 19% in volume for comparable units. Revenues reached MSEK 12 538 (10 674), corresponding to a volume increase of 15%. Operating profit was up 29% to MSEK 2 306 (1 781) a margin of 18.4% (16.7). Based on the belief in a continued strong growth in China, but also in Asia overall, Atlas Copco has opened a screw compressor element manufacturing plant in Wuxi, China. The new plant serves as a complement to the main plant in Antwerp, Belgium. The demand for Atlas Copco’s products and services, from most customer segments such as mining, construction, and the manufacturing and process industries, is expected to remain at the current high level in the near-term.