Ronnie Leten comments on Atlas Copco’s Q1 results
April 29, 2014
Stockholm, Sweden, April 29, 2014: Atlas Copco, a leading supplier of sustainable productivity solutions, today reported an 8% increase in orders received for the first quarter. Overall near-term demand for the Group’s products and services is expected to increase somewhat.
Orders received in the first quarter rose to MSEK 22 653 with a strong contribution from Edwards Group, the newly acquired vacuum solutions business. Year-on-year, both orders and revenues were down 2% organically. Revenues reached MSEK 21 423 and the operating profit was MSEK 3 760 (4 156), corresponding to a margin of 17.6% (20.5). The margin was negatively affected by lower volumes, investments in the sales and service organizations, currency changes and dilution from acquisitions.
“We see positive signs in the industrial and construction segments, while it is still challenging in the mining area,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “We continue to strengthen our presence to provide customers everywhere with innovative products and services to help them increase productivity.”
Innovations launched in the first quarter include a new AIRnet piping system, which reduces installation time by up to 85%. Another new product is the electro mechanical press tool, primarily used in power train assembly applications, that enhances customers’ flexibility and efficiency in production. With the added tool two types of assembly solutions is provided in one system.
The overall demand for the Group’s products and services is expected to increase somewhat in the near term. “The demand from the mining industry is expected to remain at the current level, while the demand from manufacturing and construction segments is expected to increase somewhat,” said Ronnie Leten.
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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 a world-leading provider of sustainable productivity solutions. The Group serves customers with innovative compressors, vacuum solutions and air treatment systems, construction and mining equipment, power tools and assembly systems. Atlas Copco develops products and service focused on productivity, energy efficiency, safety and ergonomics. The company was founded in 1873, is based in Stockholm, Sweden, and has a global reach spanning more than 180 countries. In 2013, Atlas Copco had revenues of BSEK 84 (BEUR 9.7) and more than 40 000 employees.