Atlas Copco Interim report at March 31 2008
April 24, 2008
Continued strong sales and profit growth
· 11% organic order growth; all business areas and regions contributed.
· Revenues reached MSEK 17 122 (13 390), organic growth 18%.
· Operating profit up 28% to MSEK 3 248 (2 541), a margin of 19.0% (19.0)
- in spite of negative currency impact of MSEK 380 vs previous year.
· Profit before tax increased 22% to MSEK 3 026 (2 477).
· Profit for the period was MSEK 2 376 (1 826)
- whereof continuing operations MSEK 2 192 (1 773).
· Basic and diluted earnings per share were SEK 1.94 (1.49).
- Earnings per share from continuing operations were SEK 1.79 (1.45).
·Operating cash flow was MSEK 900 (845).
Near-term demand outlook
The demand for Atlas Copco’s products and services from most customer segments and regions is expected to remain at a high level. The positive outlook includes the main part of the construction segment, while certain sectors, primarily related to housing is expected to remain weak in North America and parts ofEurope.
Review of the first quarter
In North America, the demand for industrial equipment remained on a high level in most segments, benefitting primarily compressed air equipment and related aftermarket products.
Demand for advanced assembly tools and systems from the motor vehicle industry increased compared to the levels seen in recent periods. Sales to the mining industry continued to be strong, boosted by significantly higher activity in the coal mining segment in the USA . Exploration equipment, consumables and services were also high in demand, while the demand from parts of the construction industry, primarily related to housing, was weaker than the previous year.
The demand development for all types of equipment and most customer segments continued to be strong throughout South America.
In Europe , most countries continued to see high levels of demand. Eastern Europe reported very strong growth rates for all types of equipment while growth in Western Europe was more moderate. Demand for mining equipment, predominantly in Eastern Europe , continued to increase and demand for compressed air equipment and industrial tools from manufacturing industries remained healthy. However, a more cautious attitude from parts of the construction industry affected the demand for construction equipment negatively in Western Europe .
Demand in the Africa/Middle East region continued to grow. Construction equipment sales grew strongly in Middle East and Northern Africa and compressed air equipment showed a good development in Southern Africa .
Demand for all types of equipment was good throughout Asia, with particularly strong increases in India. Growth in China and South East Asia was also very good, while it remained negative in Japan. In Australia , the demand from the important mining industry remained strong.
For further information
Atlas Copco AB
SE-105 23 Stockholm, Sweden
Phone: +46 8 743 8000, Fax: +46 8 643 3718
Corp. id. no: 556014-2720
Ingrid Andersson, Investor Relations Manager,
Phone: +46 8 743 8290 or +46 70 497 8290 [email protected]
Love Liman, Acting Media Relations Manager, Corporate Communications,
Phone: +46 8 743 8060 or +46 73 231 8060