Atlas Copco Interim report at September 30, 2007
Strong sales and profit growth
· Solid market conditions and improved market position.
· Double-digit growth continued in all regions.
- 15% organic order growth.
- 22nd consecutive quarter with organic growth.
· Revenues reached MSEK 16 431 (12 538), organic growth 19%.
· Operating profit increased 36% to MSEK 3 127 (2 306), a margin of
19.0% (18.4).
· Profit before tax was MSEK 2 708 (2 081).
· Profit for the period was MSEK 1 890 (2 117).
- Profit from continuing operations increased 28% to MSEK 1 890 (1
475).
· Earnings per share from continuing operations were SEK 1.54 (1.17).
· Basic and diluted earnings per share were SEK 1.54 (1.68).
· Operating cash flow for continuing operations was MSEK 1 586 (916).
July – September January – September
MSEK 2007 2006 % 2007 2006 %
Orders received 17 388 13 847 +26 50 243 41 108 +22
Revenues 16 431 12 538 +31 45 806 36 930 +24
Operating
profit 3 127 2 306 +36 8 705 6 739 +29
– as a
percentage
of revenues 19.0 18.4 19.0 18.2
Profit
before tax 2 708 2 081 +30 8 400 6 313 +33
– as a
percentage
of revenues 16.5 16.6 18.3 17.1
Profit from
continuing
operations 1 890 1 475 +28 6 040 4 493 +34
Profit from
discontinued
operations,
net of tax - 642 53 1 708
Profit for
the period 1) 1 890 2 117 6 093 6 201
Basic
earnings per
share
from
continuing
operations,
SEK 1.54 1.17 +32 4.93 3.56 +38
Basic
earnings per
share, SEK 1) 1.54 1.68 4.97 4.92
Diluted
earnings per
share, SEK 1) 1.54 1.68 4.97 4.91
1)Including discontinued operations.
Near-term demand outlook
The demand for Atlas Copco’s products and services from most customer
segments and regions is expected to remain at the current high level.
The positive outlook includes the main part of the construction segment,
while construction related to housing is expected to slow down,
primarily in North America.
Atlas Copco Group
Summary of nine-month results
Orders received in the first nine months of 2007, increased 22%, to MSEK
50 243 (41 108). Volume for comparable units increased 16%, price
increases added 2% and structural changes 9%, while the negative
currency translation effect was 5%. Revenues increased 24%, to MSEK 45
806 (36 930), corresponding to 17% volume growth.
Operating profit increased 29% to MSEK 8 705 (6 739), which corresponds
to a margin of 19.0% (18.2). The negative impact of changes in exchange
rates compared with the previous year was approximately MSEK 650 for the
first nine months. Profit before tax amounted to MSEK 8 400 (6 313), up
33% and corresponding to a margin of 18.3% (17.1). This includes an MSEK
134 capital gain from divestment of shares in connection with the
initial public offering of common stock in RSC Holdings Inc. Profit from
continuing operations increased 34% to MSEK 6 040 (4 493). Profit for
the period totaled MSEK 6 093 (6 201), including MSEK 53 (1 708) from
discontinued operations. Basic earnings per share were SEK 4.97 (4.92)
and diluted earnings per share were 4.97 (4.91). Earnings per share from
continuing operations were SEK 4.93 (3.56).
Operating cash flow before acquisitions, divestments and dividends
totaled MSEK 3 663 (2 591).
Review of the third quarter
Market development
In North America, the demand for industrial equipment and its related
aftermarket products increased, supported by a good investment level in
most segments. Demand for advanced assembly tools and systems from the
motor vehicle industry, however, decreased compared to the previous
year. The mining industry, particularly in Mexico and Canada remained
very active with strong increases in demand for drilling and loading
equipment as well as for consumables. The demand from the construction
market was somewhat weaker than in previous quarters but still at a
healthy level.
InSouth America, the positive development of demand continued. The very
strong growth in Brazil improved further and substantial sales increases
were noted for compressors, mining and construction equipment and
industrial tools. Demand was also strong in the other countries in the
region.
Demand remained healthy in Europe. Investments in compressed air
equipment and industrial tools from manufacturing and process industries
increased. The development in the mining industry continued to be very
strong, while the demand for construction equipment leveled off in some
countries. The strongest growth in order intake was noted in Eastern
Europe and the Nordic countries.
TheAfrica/Middle Eastregion continued to develop very positively. Mining
demand remained high and sales of construction and industrial equipment
grew strongly in Northern Africa and the Middle East.
Demand for all types of equipment was good throughout Asia, with
particularly strong increases in China and India, the two biggest
markets. In Australia, the demand from most customer segments remained
strong.
For further information
Atlas Copco AB
SE-105 23 Stockholm, Sweden
Phone: +46 8 743 8000, Fax: +46 8 644 9045
Internet: www.atlascopco.com
Corp. id. no: 556014-2720
Analysts
Ingrid Andersson, Investor Relations Manager,
Phone: +46 8 743 8290 or +46 70 497 8290 ir@se.atlascopco.com
Media
Daniel Frykholm, Media Relations Manager, Corporate Communications,
Phone: +46 8 743 8060 or +46 70 865 8060