Gunnar Brock comments on Atlas Copco’s Q1 results
Stockholm, Sweden, April 24, 2008: Atlas Copco today reported first-quarter results with sustained high growth in all business areas and on all geographical markets.
“We are proud to add another strong quarter and we have now six years or 24 consecutive quarters of growth,” says Atlas Copco’s President and CEO Gunnar Brock. “Organic growth continued to be very strong in emerging markets, which today accounts for well over 40% of the Group’s orders received.”
Revenues during the period increased 28% to MSEK 17 122, corresponding to an organic growth of 18%. Operating profit increased 28%, reaching a margin of 19.0% (19.0), despite negative effects of higher material costs and an unfavorable development of exchange rates. “Our truly global presence and strong market positions both when it comes to equipment and aftermarket has contributed to the very strong revenue and profit development.”
Atlas Copco continues to expand at a high rate in new markets and within new segments through organic growth and strategic acquisitions. Since January, the Group has established new customer centers in Angola and Bangladesh, inaugurated new modern compressor production units in China and New Zealand, and acquired a company in India and one in the United States.
To develop and launch new products and solutions with superior productivity and energy efficiency over the entire lifecycle is a focus area. ”Later today we will honor the inventors of two big successes: A drill rig control system that increases the customers’ productivity and improves the operator safety, and a service that reduces energy consumption in compressed-air installations.”
“We believe that the demand for Atlas Copco’s products and services from most customer segments and regions will remain at a high level in the near-term.” The positive outlook includes the main part of the construction segments, while certain segments, primarily related to housing is expected to remain weak in North America and parts of Europe.