Atlas Copco this week reported record revenues and operating profit for the second quarter, supported by growing revenue volumes and a strong service business. Revenues reached a record of SEK 23.44 billion (about U.S. $3.34 billion), up 9 percent organically from SEK 19.95 billion (U.S. $2.84 billion) in the same period a year ago. The operating profit increased 20 percent from SEK 4.18 billion (U.S. $595.5 million) in Q211 to SEK 5.02 billion, corresponding to a margin of 21.4 percent. Overall demand remained on a healthy level.
“Committed work pays off,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “Everywhere in the world our people are challenging themselves to provide even better service to customers, while they at the same time are working in a more productive and lean way. The strong performance of our service business means we will both sustain and continue to develop customer support and relations.”
Orders received rose to SEK 23.26 billion (U.S. $3.32 billion), corresponding to a decline of 2 percent organically.
The aftermarket, including service and consumables, had strong growth during the quarter. Order intake was good for small and medium-sized equipment but was lower for large compressors and mining equipment compared to the strong previous year.
“The overall demand for Atlas Copco’s products and services is expected to remain at the current high level,” Leten said. “Investments in service, improved operational excellence and continuous launches of great new products will continue to give Atlas Copco sustainable profitable development.”
Atlas Copco recently launched a new controller designed to control an entire compressed air network and save 10 percent energy on average. Other innovations introduced in the quarter include a range of oil-sealed rotary screw vacuum pumps, a new advanced assembly tool for high-torque applications, a new drill rig for tunneling applications, new surface drill rigs, and a range of rig-mounted bucket crushers for recycling.
Based in Stockholm, Sweden, Atlas Copco is an industrial group that makes compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems.