Ronnie Leten comments on Atlas Copco’s Q4 results
February 2, 2011
Stockholm, Sweden, February 2, 2011: Atlas Copco today reported record profits and continued order growth in the fourth quarter report. All three business areas achieved strong results and operating margins above 20%.
Order intake increased 27% to MSEK 19 374 (15 276), an organic growth of 28%. Revenues increased 22% to MSEK 19 401 (15 942) and operating profit increased to a new record of MSEK 4 007, corresponding to an operating margin of 20.7%.
"We can look back at 2010 with pride. We have strengthened our position in the market and accomplished strong results,” says Ronnie Leten, President and CEO of the Atlas Copco Group.
“We continue to invest in our operations to stay fit for even more profitable growth. One example is the substantial investment of almost half a billion Swedish kronor to increase production capacity and efficiency of rock drilling tools in Fagersta, Sweden. Another is the big investment in a new R&D center in Nanjing, China, which was approved today.”
Additionally, a new production facility for gas and process turbo compressors and turbo expanders was inaugurated in China in the quarter and a new customer center, primarily focusing on mining equipment, was opened in Mali.
The Group updates its goals for sustainable, profitable development. “The updated goals show our focus on all aspects of sustainable development, including a strong commitment to continued growth and high profitability.” The Group aims for an annual revenue growth of 8% over a business cycle and an increased dividend payout ratio.
The near-term overall demand for the Group’s products and services is expected to increase somewhat. The demand in the emerging markets as well as from the mining industry is expected to stay strong. Some mature markets, like North America, are expected to continue the recent improvement.
The Board of Directors of Atlas Copco proposes a dividend of SEK 4.00 (3.00) and a mandatory redemption of SEK 5.00 per share.
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Love Liman, Acting Media Relations Manager
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Atlas Copco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.
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 2010, Atlas Copco had about 33 000 employees and revenues of BSEK 70 (BEUR 7.3).