Brock comments on Atlas Copco’s Q4 results 2005
Stockholm, Sweden, February 2, 2006: Today Atlas Copco reported yet another quarter with record sales and record profits. “A record fourth quarter ended our record year,” said Gunnar Brock, President and CEO. “We believe in a continued positive development going forward.” The demand for Atlas Copco’s products and services is expected to remain at the current high level in the near-term.
Orders received increased 29%, to MSEK 15 196 (11 762) in the quarter, up 11% in volume for comparable units. Revenues amounted to MSEK 15 033 (11 592), up 12% in volume. Operating profit was up 66%, supported by positive currency effects, and the margin was 19.7% (15.4) outperforming last quarter’s all-time high. Profit after financial items was up 61% to MSEK 2 896 (1 798), a margin of 19.3% (15.5). The Rental Service business area had another quarter with record results. “We have taken the strategic decision to explore a divestment of the construction equipment rental business. Having said this, we will stay as an important supplier to equipment rental companies, both in North America and in other regions. We will also continue to develop and grow our specialty rental business, where we are renting equipment such as compressors and drill rigs.” See also separate press release. Atlas Copco has been making substantial investments to increase its global presence and penetration in the equipment sales and aftermarket areas. “We have 30-40 percent more feet on the street, i.e. sales engineers and service technicians serving the customers, than three years ago. This has given us a solid position to grow further on strategic markets such as China, Russia, India and the United States.” In 2005, earnings per share increased by 41%. The Atlas Copco’s stock price increased by 77%, compared to the general index on the Stockholm Stock Exchange, which increased 33% during the same period.