July 15, 2019
Stockholm, Sweden, July 15, 2019: Mats Rahmström, President and CEO of the Atlas Copco Group comments on the Q2 results that were released today. “We continue to grow and deliver high profitability despite the uncertainties in the global economy”.
The order volumes for compressors increased in the quarter while orders for vacuum equipment decreased. The industrial assembly tools and solutions business saw a somewhat lower equipment demand from the motor vehicle industry. For power equipment, such as generators and pumps, the order volumes increased strongly.
"The demand for our products remained high and the service business continued to grow in all business areas", said Mats Rahmström.
Orders received in the second quarter grew to MSEK 26 565 (25 120), an organic growth of 2%. Revenues were MSEK 25 580 (24 461), up 1% organically. Excluding items affecting comparability, the adjusted operating profit increased 2% to MSEK 5 622 (5 485), corresponding to a margin of 22.0% (22.4). The return on capital employed increased further to 33% (31).
During the quarter, Atlas Copco acquired nine companies and during 2019, up until today, 16 acquisitions have been closed.
"Acquiring the right companies as well as investing in research and development has played an important part in making Atlas Copco what it is today", said Mats Rahmström. We know that diversity makes us stronger and when we bring new companies in we want them to keep their unique traits and what made them successful to begin with. I am happy to welcome these new members to the Group and look forward to leveraging their ideas, new technologies and service opportunities, with the existing strengths of Atlas Copco. That combination will bring true value to our customers".
Looking ahead, in the near-term, the demand for Atlas Copco’s products and services is expected to be somewhat lower than the level in the second quarter.