Stockholm, Sweden-based Atlas Copco last week reported fourth-quarter results with growth rates remaining at very high levels and operating profit reaching a new record.
Revenues during the period, which is Atlas Copco’s 23rd consecutive quarter of organic growth, increased 29 percent to SEK 17.5 billion (U.S. $2.7 billion), from SEK 13.6 billion (U.S. $2.1 billion) a year ago. Operating profit rose 36 percent to SEK 3.4 billion (U.S. $515.7 million), giving a margin of 19.2 percent, the highest ever achieved by the group.
“The strong global demand situation showed no major change in the fourth quarter and we recorded an impressive growth of 33 percent in orders received,” said Gunnar Brock president and CEO. “We believe demand for our products will remain at the current high level in the near term for most customer segments.”
The Construction and Mining Technique business area reported order growth of 54 percent during the quarter, of which 30 percent was organic. Its operating profit rose 46 percent to SEK 1.2 billion (U.S. 188.4 million), giving an operating profit margin of 17.2 percent.
Demand from all geographical regions and most customer segments increased during the fourth quarter. Organic growth was especially strong in emerging markets, which accounted for well over 40 percent of the group’s orders received in 2007.
Atlas Copco AB’s board of directors is proposing to the annual general meeting a dividend to the shareholders of SEK 3.00 per share (U.S. $0.46), an increase of 26 percent, and will request a mandate to repurchase a maximum of 10 percent of outstanding shares.
Atlas Copco is a provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and Industries Ltd. last week reported record financial results for 2007 representing the fifth consecutive assembly systems, to related aftermarket and rental.