Brock comments on Atlas Copco’s Q1 results 2005

Stockholm, Sweden, April 27, 2005: Today, Atlas Copco reported strong growth and record profit margins in its first quarter. “It is truly encouraging to begin a year with such strong results,” says Gunnar Brock, President and CEO.

“Orders received grew 17% and all business areas contributed strongly to the results, across all regions. It is also a real highlight to have an operating margin of 15.6% in what is usually the toughest quarter of the year.” Orders received for the first quarter were MSEK 11 990 (10 278), a volume growth of 8%. Revenues increased 16% to MSEK 11 168 (9 595), up 10% in volume. The operating margin increased to 15.6% (13.8). Profit after financial items improved 35% to MSEK 1 665 (1 231), a margin of 14.9% (12.8). “Among the achievements are orders coming both from new application areas, such as the large order for turbo compressors from the liquefied natural gas market, as well as important orders from industries and for applications where we are well established, for example orders for industrial tools from the motor vehicle industry and from the general industry.” During the first quarter, Atlas Copco completed a number of acquisitions within its strong core-competence areas. “The acquired companies Scanrotor, GSE tech-motive, Lifton, and BIAB Tryckluft are all relatively small, but they fit 100% with our growth strategy.” In the near-term, demand for Atlas Copco’s products and services is expected to remain at the current high level.