Stockholm, Sweden, January 28, 2020: Mats Rahmström, President and CEO of the Atlas Copco Group, comments on the interim report for Q4 and full-year summary for 2019 that was released today. Orders received, revenues and operating profit were on record levels during 2019.
During the fourth quarter 2019 order volumes for large industrial compressors grew, while the order intake for smaller stationary and portable compressors decreased. The orders for equipment to the automotive industry decreased significantly. Compared to the same quarter previous year there was a strong increase of sales of vacuum equipment. The service business, as well as the specialty rental business, continued to grow.
"The activity level in most end markets weakened during the last quarter”, said Mats Rahmström. “Despite this the order intake increased and revenues were record high. We focus on the opportunities although there will certainly be challenges ahead as well”.
Orders received in the fourth quarter grew to MSEK 25 625 (23 743), an organic growth of 1%. Revenues were MSEK 27 319 (25 321), up 1% organically. Reported operating profit decreased 1% to MSEK 5 627 (5 661), corresponding to a margin of 20.6% (22.4). Excluding items affecting comparability, the adjusted operating profit increased 7% to MSEK 5 913 (5 549), corresponding to a margin of 21.6% (21.9).
The return on capital employed was 30% (33).
The Board of Directors proposes a dividend of SEK 7.00 (6.30), to be paid in two installments.
“Atlas Copco has the financial strength to focus on where we want to be in the future and invest in the innovation needed to take us there. Our long-term success is achieved through talent, team work and persistence with many small actions contributing to the greater whole”, said Mats Rahmström.
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 fourth quarter.
Great ideas accelerate innovation. At Atlas Copco we have been turning industrial ideas into business-critical benefits since 1873. By listening to our customers and knowing their needs, we deliver value and innovate with the future in mind.
In 2019, Atlas Copco had revenues of BSEK104 (BEUR 10) and at year end about 39 000 employees.