Ronnie Leten comments on Atlas Copco’s Q4 2016
Stockholm, Sweden, January 27, 2017: Atlas Copco, a leading provider of sustainable productivity solutions, today reported a strong end to a solid year. Orders, revenues, operating profit and cash flow hit new records in the quarter, supported by robust overall growth. In the near term, the overall demand for the Group is expected to increase somewhat.
Orders received in the fourth quarter grew to MSEK 27 617 (23 206), an organic growth of 7%. Orders grew for all business areas and in all regions. Revenues were MSEK 28 495 (25 003), and the operating profit margin was 20.3% (19.5).
"I am happy to see that our focus on increasing customers’ productivity is resulting in strong organic growth,” said Ronnie Leten, President and CEO of the Atlas Copco Group. “Both the equipment and service businesses performed well."
In January, Atlas Copco announced that Mats Rahmström will take over as President and CEO from April 27, 2017, as Ronnie Leten is stepping down after eight years in the position. Further, the Board of Directors initiated work to propose to the Annual General Meeting 2018 to decide on a split of the Group into two listed companies.
Important announcements in the fourth quarter included the introduction of revised key performance indicators and goals for its non-financial priorities for sustainable profitable growth. These priorities are highest ethical standards, safety and well-being, competent teams, resource efficiency, and innovation.
"Sustainability is an integrated part of our business,” said Ronnie Leten. “It will ensure that we can continue to thrive and help customers be more competitive in the long term".
Helena Hedblom was appointed President of the Mining and Rock Excavation Technique business area and member of Group Management, starting January 1, 2017.
Atlas Copco has agreed to divest the road construction equipment business to Fayat Group.
Innovative products launched in the quarter include energy-saving air dryers, turbomolecular vacuum pumps with outstanding performance, electrical nutrunners with highly traceable tightening, a surface exploration drilling rig with advanced safety features, and a petrol breaker with electronic fuel injection for construction work that offers better handling and reduced weight.
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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 2016, Atlas Copco had revenues of BSEK 101 (BEUR 11) and about 45 000 employees.