Brock comments on Atlas Copco’s Q2 results, 2003
17 jul 2003
Stockholm, Sweden, July 17, 2003 - Today, the Atlas Copco Group reported its second quarter results. "The revenue volume was up and we have managed to achieve increased profit in the quarter," says Gunnar Brock, President and CEO. "There has been no assistance from increased market demand, but internal work to reduce product cost and increase efficiency has contributed to the good results."
Orders received were MSEK 11,498 (12,641) in the second quarter, corresponding to a volume decrease of 1%. Revenues were MSEK 11,148 (12,105), up 1% in volume. Profit after financial items increased to MSEK 1,212 (1,074), corresponding to a margin of 10.9% (8.9), despite a negative currency impact of MSEK 275. The operating margin was 11.7% (10.8). Earnings per share were up 20%, to SEK 3.87 (3.22).
“Among the highlights is the performance improvement in the Rental Service business area, which we are very satisfied with. Compressor Technique has once again proven its capability to deliver good results, and in addition, its order volume increased by 2%. The Construction and Mining Technique business area achieved a healthy growth in order volume in the quarter. Also, we are pleased to have Industrial Technique back on a 10% operating margin.”
“Our strong emphasis to further develop the aftermarket business is showing good results in all three of our manufacturing business areas.”
The operating cash flow remained high also in the second quarter. “A high and stable cash flow is a sign of an efficiently run business.”
Revenues for the first six months of 2003 were MSEK 21,548 (23,740), a drop of 9% due to a weak dollar, corresponding to a 1% decline in volume. Profit after financial items was MSEK 2,168 (1,986), a margin of 10.1% (8.4). The operating profit margin was 11.0% (10.4).
Overall, the demand for the Atlas Copco Group’s products and services is expected to be either unchanged or slightly improved. “Looking ahead, the activity level in the construction industry is anticipated to remain weak. However, there are some signs of renewed confidence in the industrial sector, and the mining industry is expected to continue on a favorable path.”
CONTACT: Annika Berglund, Senior Vice President, Group Communications
Phone +46 8 743 8070 or +46 70 322 8070, [email protected]
Atlas Copco is an international industrial Group with its head office in Stockholm, Sweden. In 2002, the Group had revenues of close to SEK 48 billion (EUR 5.2 billion), with 98% of revenues outside Sweden, and about 26,000 employees. The Group produces and markets compressed air equipment and generators, construction and mining equipment, electric and pneumatic tools, and assembly systems and offers related service and equipment rental. The Atlas Copco Group includes famous brands such as Atlas Copco, RSC, Milwaukee Electric Tool, Chicago Pneumatic, and AEG Power Tools. More information can be found on the web site: www.atlascopco-group.com.