Ronnie Leten comments on Atlas Copco’s Q2 results
July 16, 2010
Stockholm, Sweden, July 16, 2010: Atlas Copco today reported second quarter results with very strong order growth in all business areas and record-high operating profit margin.
“The overall demand for the Group’s products and services has recovered rapidly and a positive demand development was seen in all business areas,” says Ronnie Leten, President and CEO of the Atlas Copco Group. “We continue to see a strong growth in India, China, and Brazil. The United States had a good development and Europe showed solid improvement, apart from the southern parts.”
Orders received increased 33% organically to MSEK 19 221 (14 535) and revenues increased 9% organically to MSEK 17 430. Operating profit increased to MSEK 3 499 (2 066), corresponding to an operating margin of 20.1% (14.4% the previous year, adjusted for restructuring costs).
“We are proud to report the highest operating margin ever. Our people have made tremendous achievements in increasing productivity and developing new innovative products during a tough period, without losing the customer focus,” says Leten.
During the quarter Atlas Copco continued its strategy to increase its market presence. A customer center was opened in the Democratic Republic of the Congo. In the United States two distributors were acquired: one for compressors in Minnesota and one for industrial tools in Texas.
A number of products and solutions, which offer higher productivity, better ergonomics and increased safety, were launched in the quarter.
“We have a fantastic business opportunity to reduce energy consumption. Most customers with older compressor installations will both reduce costs and lower their carbon dioxide emissions by changing to modern equipment.” Up to 10% of the energy consumption in the manufacturing industry comes from compressed air systems. Atlas Copco’s energy efficient VSD-compressors help customers reducing that energy consumption by up to 35%.
Commenting on the near-term outlook Leten says: “The overall demand for the Group’s products and services is expected to increase somewhat. In emerging markets, demand is foreseen to develop favorably in all business areas. Demand in North America and parts of Europe is expected to increase gradually.”
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Atlas Copco is an industrial group with world-leading positions in compressors, construction and mining equipment, power tools and assembly systems. The Group delivers sustainable solutions for increased customer productivity through innovative products and services. Founded 1873, the company is based in Stockholm, Sweden, and has a global reach spanning more than 170 countries. In 2009, Atlas Copco had about 30 000 employees and revenues of BSEK 64 (BEUR 6.0). Learn more at www.atlascopco.com.