Atlas Copco Third quarter report 2006

Note: All figures are for continuing operations, unless otherwise stated.

Strong value creation – high growth and improved operating profit margins

· Continued strong growth in all regions and most customer segments.

· Orders received up 21%, whereof 19% in volume.

· Revenues reached MSEK 12 538 (10 674), up 15% in volume.

· Operating profit was MSEK 2 306 (1 781), corresponding to a margin of 18.4% (16.7).

· Profit before tax increased 16% to MSEK 2 081 (1 800).

· Profit for the period was MSEK 2 117 (1 709).

· Basic earnings per share were SEK 3.36 (2.71).

· Operating cash flow totaled MSEK 434 (1 671).

· Atlas Copco sells majority stake of the equipment rental business.

· Start of share repurchases.


July – September January – September
MSEK 2006 2005 % 2006 2005 %
Orders 13 847 11 452 +21 41 108 32 599 +26
received
Revenues 12 538 10 674 +17 36 930 30 223 +22
Operating 2 306 1 781 +29 6 739 4 792 +41
profit
– as a 18.4 16.7 18.2 15.9
percentage
of revenues
Profit 2 081 1 800 +16 6 313 4 766 +32
before tax
– as a 16.6 16.9 17.1 15.8
percentage
of revenues
Profit from 1 475 1 272 +16 4 493 3 429 +31
continuing
operations
Profit from
discontinued 642 437 1 708 970
operations,
net of tax
Profit for 2 117 1 709 +24 6 201 4 399 +41
the period
1)
Basic 3.36 2.71 +24 9.83 6.97 +41
earnings per
share, SEK
1)
Equity per 45 37
share, SEK
1)
Return on 36 26
capital
employed, %
1)


1) Including discontinued operations. Earnings for Q2 and Q3 2006 do not include depreciation on assets held for sale and the earnings for Q2 2006 have thus been restated for the effect of the depreciation. See Accounting principles, page 8.

Near-term demand outlook
The demand for Atlas Copco’s products and services, from most customer segments such as mining, construction, and the manufacturing and process industries, is expected to remain at the current high level.