Gunnar Brock comments on Atlas Copco’s Q4 results
February 4, 2008
Stockholm, Sweden, February 4, 2008: Atlas Copco today reported fourth-quarter results with growth rates remaining at very high levels and operating profit reaching a new record.
“The strong global demand situation showed no major change in the fourth quarter and we recorded an impressive growth of 33% in orders received,” says President and CEO Gunnar Brock. “We believe demand for our products will remain at the current high level in the near term for most customer segments.”
Revenues during the period, which is Atlas Copco’s 23rd consecutive quarter of organic growth, increased 29% to MSEK 17 549, corresponding to an organic growth of 18%. Operating profit rose 36% to MSEK 3 361, giving a margin of 19.2%, the highest ever achieved by the Group.
“While all business areas improved their results, it is worth highlighting the remarkable growth in both sales and profit at Construction and Mining Technique,” says Gunnar Brock. The Construction and Mining Technique business area reported order growth of 54% during the quarter, of which 30% organic. Its operating profit rose 46% to MSEK 1 228, giving an operating profit margin of 17.2% (16.6).
Demand from all geographical regions and most customer segments increased during the fourth quarter. Organic growth was especially strong in emerging markets, which accounted for well over 40% of the Group’s orders received in 2007.
Atlas Copco AB’s Board of Directors is proposing to the Annual General Meeting a dividend to the shareholders of SEK 3.00 per share, an increase of 26%, and will request a mandate to repurchase a maximum of 10% of outstanding shares.
For the full quarterly report, please click here.
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Atlas Copco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 12:01 on February 4, 2008.