Ronnie Leten comments on Atlas Copco’s Q3 2016
October 20, 2016
Stockholm, Sweden, October 20, 2016: Atlas Copco, a leading provider of sustainable productivity solutions, today reported solid organic order growth. It was supported by strong vacuum and industrial tools businesses, and improved order intake for mining equipment. In the near term, the overall demand for the Group is expected to remain at current level.
Orders received in the third quarter grew to MSEK 26 696 (24 149), corresponding to an organic growth of 7%, the biggest increase in more than four years. Orders grew for all business areas. Revenues were MSEK 26 528 (25 723), and the adjusted operating profit margin was 19.6% (20.4). “We are pleased to see organic growth, which reflects our hard work and dedication to our customers,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “The semiconductor industry showed strong demand, benefiting our vacuum business. Other sectors with solid demand included automotive and aerospace. Due to our actions in the Mining and Rock Excavation Technique business area our performance improved.” Atlas Copco continued to grow also through strategic acquisitions. The Group completed several acquisitions in the quarter, including those of the vacuum businesses Leybold and CSK. Atlas Copco announced it will establish a fifth business area, Vacuum Technique, which will be operational from January 1, 2017 and have about 6 800 employees. Geert Follens will head Vacuum Technique. “Vacuum solutions are a growth area, and we have the ambition to be the global market leader,” Ronnie Leten said. “With a dedicated business area we can even better help customers increase their productivity.” Innovative products launched in the quarter include compressors with unsurpassed efficiency, an assembly tool with software that offers customers higher speed and more precise accuracy, a powerful mine truck that comes ready with automation, and a versatile portable compressor for the construction market. “We continue to prioritize world-leading innovations to help customers save energy and boost productivity while also making the work environment safer and more comfortable for the equipment operators,” Ronnie Leten said.
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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.