Atlas Copco posted a 9 percent revenue increase in the third quarter with SEK 25.7 billion (about U.S. $3.1 billion), compared to SEK 23.6 billion in the third quarter a year ago. The company reported growth in the service business, stable industrial demand, but weak demand from mining and oil and gas-related segments. Operating profit was a company record SEK 5.3 billion, compared to SEK 4.14 billion a year ago.
Europe had the highest order increase, 7 percent in local currency, while markets such as China and Brazil were weak. Globally, orders declined 5 percent organically while revenues were flat.
“Sectors such as aerospace and automotive showed good demand demand for our industrial tools and assembly systems, but the mining and the oil and gas sectors were weak,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “We are staying agile by focusing on efficiency while creating customer value by continuous innovations.”
Innovative products introduced during the quarter included productive electric assembly tools, a low-pressure rock drill for surface drilling applications, and a portable compressor for geothermal drilling applications that offers faster drilling and improved fuel efficiency.
Recent important events included the acquisitions of a U.S. specialty rental dryer business, a Canadian compressor distributor and a U.K. process control expert. Atlas Copco inaugurated a vacuum solutions plant in China and was ranked the best industrial company on the environment by Newsweek magazine.
Atlas Copco is based in Stockholm, Sweden, with U.S. headquarters in Commerce City, Colo.