Brock comments on Atlas Copco’s Q3 results 2005
Stockholm, Sweden, October 21, 2005: Today Atlas Copco reported yet another quarter with record sales and record profits. “Atlas Copco stands stronger than ever with four very solid business areas,” emphasizes Gunnar Brock, President and CEO. “Our market positions have been further strengthened and all product lines have been growing.”
Orders received were up 25%, to MSEK 14 257 (11 418) in the quarter, an increase of 15% in volume for comparable units. Revenues reached MSEK 13 479 (11 325), up 10% in volume. The operating profit increased 31% and the margin ended at a new all-time high, 19.0% (17.3). Profit after financial items was up 33% to MSEK 2 470 (1 851), a margin of 18.3% (16.3). Atlas Copco has for some time been making substantial investments to increase its presence and penetration in the equipment sales and aftermarket areas. “The market investments are now starting to pay off in terms of strengthened competitive positions and good volume growth.” Through acquiring companies which are close to the core business, Atlas Copco is accelerating its inroad into new market segments and new applications. “To enter rapidly into the growing market of compressed natural gas for vehicles, we have acquired compressor manufacturer Intermech Ltd. in New Zealand. The addition of Fuji Air Tools in Japan will be an important gateway into the Japanese and other Asian motor vehicle industries.” The Rental Service business area had a record high utilization rate and has further improved efficiency. “Rental Service will capitalize on its robust position and focus on developing the RSC Equipment Rental brand into the leading brand in the industry on the North American market.” The demand for Atlas Copco’s products and services is expected to remain at a high level; Demand from manufacturing and process industries is expected to stay favorable. Activity in the construction industry is expected to continue to increase somewhat. Demand from the mining industry is expected to remain strong.