Ronnie Leten comments on Atlas Copco’s Q1 2016
April 26, 2016
Stockholm, Sweden, April 26, 2016: Atlas Copco, a leading provider of sustainable productivity solutions, today reported stable order intake supported by a strong vacuum business while the mining business continued to be weak. The overall near-term demand for the Group is expected to remain at current level.
Orders received in the first quarter were MSEK 24 721 (25 470), negatively affected by currency. Segments such as vacuum solutions showed healthy demand, while order volumes were largely unchanged for industrial compressors and negative for products such as surface drill rigs. The service business remained robust and grew for all the businesses except mining. Overall, Asia and Europe improved while orders were lower in South America and in Africa/Middle East. North America remained unchanged. Revenues decreased 3% organically to MSEK 23 137, and the operating profit reached MSEK 4 170, corresponding to a margin of 18.0% (18.3). “The market conditions for equipment investments are difficult in many segments, while our service business continued to grow,” said Ronnie Leten, President and CEO of the Atlas Copco Group. Atlas Copco was again recognized as the world’s most sustainable machinery company by the annual Global 100 list. Innovative products launched include energy-saving vacuum pumps, an ergonomic impact wrench for vehicle service applications, high-precision concrete sprayers for underground projects, and fuel efficient portable compressors. “Supporting customers to become more competitive through innovative solutions is our passion,” Ronnie Leten said. “We continue to increase our presence and expand into adjacent businesses.” Atlas Copco has made five acquisitions year to date. The Group acquired Italian compressor manufacturer FIAC and Italian pump company Varisco. Atlas Copco also acquired compressor distributors Scales Industrial Technologies in the United States and Air et Fluides Lyonnais in France, as well as U.S. vacuum pumps business Capitol Research Equipment.
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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 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.