Atlas Copco Annual General Meeting

Atlas Copco Annual General Meeting Tuesday, April 20, 1999- Today, Atlas Copco held its Annual General Meeting. During the address to the shareholders, CEO Giulio Mazzalupi reported on the Company's performance in 1998, reflecting the effects of the Asian crisis and positive development of the Group's strategic direction "use of products." "The financial crisis in Asia had a deeper and more lasting effect than we had anticipated. Also, originating from the same crisis, the Russian and Latin American economies declined in the latter part of the year. On the positive side, the Group's strategic direction 'use of products' has developed in line with our expectations, after only 18 months," Mazzalupi commented. Atlas Copco's revenues increased 12 percent to SEK 33,740 million in 1998 and profit after financial items increased 3% to SEK 3,637 million. Earlier today, Atlas Copco reported its first quarter results. Revenues for the first quarter of 1999 were SEK 7,751 million, a decrease of 4 percent compared with the corresponding period of 1998. Profit after financial items decreased 37 percent, to SEK 557 million. In his address Mazzalupi commented on the first quarter results and added, "To adjust to the market decline, we continued to take corrective actions with regard to cost levels, and the benefits of these actions will predominately be seen in the coming quarters." Mazzalupi presented an overall outlook for demand, which is foreseen to remain on the present level in the short term. "We foresee that the somewhat weaker demand in the European economy will continue, even though some sectors, such as automotive, are expected to remain strong. The demand in North America is expected to remain on a healthy level, while in the South American countries the extremely poor business conditions are expected to continue, mainly because of high interest rates and low metal prices." Mazzalupi also commented on the outlook for operating profit: "Operating profit margins are expected to benefit from the actions and adjustments made in previous quarters." The Meeting adopted the Board of Directors' proposed dividend for the 1998 fiscal year of SEK 4.50 per share (4.25). April 23, 1998 was approved as the record date. It is estimated that dividends will be distributed via Värdepapperscentralen VPC AB (the Swedish Securities Register Center) on April 30, 1998. Revised Articles of Associations were adopted. The Meeting re-elected the following members of the Board: Anders Scharp, Sune Carlsson, Paul-Emmanuel Janssen, Lennart Jeansson, Giulio Mazzalupi, Hari Shankar Singhania, Michael Treschow, and Jacob Wallenberg. Kurt Hellström and Ulla Litzén were elected to the Board as new members. The auditors Stefan Holmström and Peter Markborn and the deputy auditors Thomas Jansson and Björn Sundkvist were re-elected by the Meeting, each to three-year terms. For the third time, the Peter Wallenberg Marketing and Sales Award was presented. Its purpose is to reward extraordinary sales efforts and the introduction of new marketing and sales methods. Ignace Cappuyns, General Manager at Mauguière, France, received the award for a well-prepared and professional training program for GA compressors with the new concept of variable speed drives (VSD). Ignace Cappuyns not only developed this training package but also conducted the training himself for all business managers and in many key markets, which resulted in sales success. Atlas Copco Atlas Copco is an international group of industrial companies with its head office in Stockholm, Sweden, and 97 percent of revenues outside Sweden. Atlas Copco companies develop, manufacture, and market electric and pneumatic tools, compressors, construction and mining equipment, assembly systems, and motion control products. Additional information about Atlas Copco is available at the Group's web site, www.atlascopco.com, which provides access to current news about the Company. For further information, please contact: Annika Berglund, Vice President, Corporate Communications, (media) phone +46 8 743 8070, mobile +46 70 322 8070, annika.berglund@atlascopco.com Hans Ola Meyer, Senior Vice President, Group Treasurer, (analysts) phone +46 8 743 8292, mobile +46 70 588 8292, hans.ola.meyer@atlascopco.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/20/19990420BIT00530/bit0001.doc http://www.bit.se/bitonline/1999/04/20/19990420BIT00530/bit0002.pdf