Ronnie Leten comments on Atlas Copco’s Q4 2015
Stockholm, Sweden, January 28, 2016: Atlas Copco, a leading provider of sustainable productivity solutions, today reported solid profitability and record cash flow in tough market conditions. The Board proposes a dividend of SEK 6.30 (6.00). The overall near-term demand for the Group is expected to remain at current level.
Orders received in the fourth quarter decreased 2% to MSEK 23 847 (24 375), with growth in service and mixed demand for equipment. Segments such as automotive and electronics showed healthy demand while mining, construction, and oil and gas remained weak. Europe and India improved while order levels fell in such markets as United States, China, Brazil and Australia. Revenues increased slightly to MSEK 25 582 (25 360) and the adjusted operating profit was MSEK 4 919 (4 886), corresponding to a margin of 19.2% (19.3).
“The solid result achieved in the tough environment is further proof of our agile and resilient business model,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “Our service business remained robust while equipment demand varied a lot among the customer segments.”
Innovative products launched in the quarter include state-of-the-art industrial vacuum pumps, advanced electric drilling units for demanding aerospace applications, an exploration drilling rig with an advanced control system, and a new portable oil-free compressor with optimal fuel efficiency. Emissions reductions are higher than ever on the global agenda, and Atlas Copco’s products play a key role in achieving the environmental goals.
“Providing customers with the most innovative solutions that help them do their job safer, faster and more energy efficient is what keeps driving us,” Ronnie Leten said.
In November, Atlas Copco agreed to acquire the German-based Leybold vacuum business, which will strengthen Atlas Copco’s technology platform for superior vacuum solutions. After the quarter, in January Atlas Copco agreed to acquire Italian piston compressor manufacturer FIAC, and acquired Italian pump manufacturer Varisco.
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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 services 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 2015, Atlas Copco had revenues of BSEK 102 (BEUR 11) and more than 43 000 employees.