Ronnie Leten comments on Atlas Copco’s Q1 results
April 28, 2010
Stockholm, Sweden, April 28, 2010: Atlas Copco achieved significant order growth and a good operating margin in the first quarter of 2010, as demand increased from most customer segments and in all regions. Orders received reached new record levels in Asia and South America.
“We have seen a clear recovery in orders, both sequentially and compared to the low level 12 months ago, much as a result of our broad geographical exposure,” says Ronnie Leten, President and CEO of the Atlas Copco Group “It is also pleasing that our efficiency measures have worked so well, and we achieved a solid profit for the period.”
Orders received increased 22% organically to MSEK 17 267 (14 331), while revenues declined 3% organically to MSEK 15 301. Operating profit increased to MSEK 2 627 (2 172), corresponding to an operating margin of 17.2% (14.5% the previous year, adjusted for restructuring costs).
“The upturn was most pronounced for mining equipment, but demand for industrial and construction equipment also improved and we recorded double-digit order growth in all business areas,” Ronnie Leten says. “The general demand development was encouraging in North America and especially good in markets such as India, China, and Brazil, while Europe remains weak.”
The overall demand for the Group’s products and services is expected to improve somewhat from current levels. Demand in most emerging markets is foreseen to develop favorably in all business areas. Demand in North America is expected to increase gradually, whereas Europe is expected to remain largely unchanged.
Two acquisitions were finalized during the quarter; a compressor distributor in Louisiana, USA, and Quincy Compressor. The beginning of the year also saw the roll-out of Atlas Copco’s upgraded brand promise: Committed to sustainable productivity.
“We are very happy to now have these companies on board. They strongly complement our existing business,” Ronnie Leten says. “Our brand promise, sustainable productivity, highlights that we take a long-term perspective in all our business activities. We will build on this fact to make Atlas Copco an even more attractive supplier, partner, employer and investment case.”
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