Atlas Copco Reports 28-Percent Q108 Revenue Increase

Stockholm, Sweden-based Atlas Copco last week reported first-quarter results with sustained high growth in all business areas and on all geographical markets.

Revenues during the period increased 28 percent to SEK 17.1 billion (about U.S. $2.9 billion), from SEK 13.4 billion in the same period a year ago, corresponding to an organic growth of 18 percent. Operating profit increased 28 percent, reaching a margin of 19 percent, which was flat over the year-ago period, despite negative effects of higher material costs and an unfavorable development of exchange rates.

“Our truly global presence and strong market positions both when it comes to equipment and aftermarket has contributed to the very strong revenue and profit development,” said Gunnar Brock, chairman and CEO. “We are proud to add another strong quarter and we have now six years or 24 consecutive quarters of growth. Organic growth continued to be very strong in emerging markets, which today accounts for well over 40 percent of the group’s orders received.”

Basic and diluted earnings per share for the first quarter were SEK 1.94 (U.S. $0.32) compared with SEK 1.49 (U.S. $0.25) in the year-ago period.

Atlas Copco continues to expand at a high rate in new markets and within new segments through organic growth and strategic acquisitions. Since January, the group has established new customer centers in Angola and Bangladesh, inaugurated new modern compressor production units in China and New Zealand, and acquired a company in India and one in the United States.

“We believe that the demand for Atlas Copco’s products and services from most customer segments and regions will remain at a high level in the near-term,” Brock said. The positive outlook includes the main part of the construction segments, while certain segments, primarily related to housing is expected to remain weak in North America and parts of Europe.

Atlas Copco is a global provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental.

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