Mazzalupi comments on Atlas Copco's Q4 results

Mazzalupi comments on Atlas Copco's Q4 results Stockholm, February 12, 2001-In the fourth quarter of 2000, Atlas Copco's revenues increased 22 percent. Operating profit was up 30 percent, to a record of SEK 1,823 m. "The demand for Atlas Copco's products and services continued to grow during the fourth quarter, and we achieved even better results," commented Giulio Mazzalupi, President and Chief Executive Officer of Atlas Copco. The volume gain for orders received was 7 percent, compared to the same period last year. "The softening in the U.S. economy had a negative effect on sales of some products, especially consumption related ones. At the same time, the trend to rent instead of own equipment continued, and consequently the equipment rental industry grew at a higher rate than the industries it serves." Atlas Copco's orders received were up 28 percent in 2000, corresponding to a volume increase of 11 percent for comparable units. Revenues also increased 28 percent, to SEK 46,628 m., a volume gain of 12 percent. The operating profit margin was 13.7 percent (12.3) and 14.2 percent in the quarter. "We are proud of what the Group has accomplished in 2000. We have further fortified our already strong position in the marketplace and increased our capability to react quickly to changes." In the year, Atlas Copco integrated new technology in both products and processes. "We have launched the largest number of innovative products ever in a single year. Through the integration of Internet technology in our processes, we have improved our efficiency, in terms of speed and reliability, and increased our market reach." Since 1997, Atlas Copco has operated in the growing equipment rental business in the United States. Today, the Atlas Copco Rental Service business area accounts for almost one-third of the Group's revenues. "Our overall market share in the rental industry is still fairly low and we have a good opportunity to grow the business both by an increased market penetration and through expansion into new areas, in the U.S. and abroad. From an efficiency point of view, there is still potential for further improvements, particularly in hire fleet management and logistics." Overall, the demand for Atlas Copco's products and services is expected to remain on present level. "Looking at different markets, the near-term outlook differs. Overall, we foresee a continued high level of demand, but without the healthy growth that characterized last year." Atlas Copco is an international group of industrial companies with its head office in Stockholm, Sweden. In 2000, the Group had revenues of over SEK 46 billion, with 98 percent of revenues outside Sweden, and over 26,000 employees. Atlas Copco companies develop, manufacture, and market industrial and professional tools, compressed air equipment, construction and mining equipment, and assembly systems, and offer related service and equipment rental. Additional information about Atlas Copco is available at the Group's website, www.atlascopco-group.com, which provides access to current news about the Company. Atlas Copco Group Summary of result for the period ended September 30, 2000 Atlas Copco Group Oct. - Dec. Chang Jan. - Dec. Chang e e 2000 1999 % 2000 1999 % Orders received 12,17 10,21 +19 46,62 36,53 +28 7 0 8 4 Revenues 12,84 10,50 +22 46,52 36,23 +28 1 7 7 4 Operating profit 1,823 1,400 +30 6,392 4,470 +43 - as a percentage of 14.2 13.3 13.7 12.3 revenues Profit after 1,371 1,022 +34 4,689 3,412 +37 financial items - as a percentage of 10.7 9.7 10.1 9.4 revenues Earnings per share*, 4.12 3.27 13.95 11.50 SEK *) Number of shares: 209.6 m. (195.3) Oct. - Dec. Chang Jan. - Dec. Chang e e 2000 1999 % 2000 1999 % Compressor Technique Orders received 3,785 3,207 +18 15,09 12,96 +16 8 5 Revenues 4,107 3,521 +17 14,72 13,20 +11 0 2 Operating profit 795 612 +30 2,737 2,153 +27 - as a percentage of 19.4 17.4 18.6 16.3 revenues Construction and Mining Technique Orders received 1,753 1,658 +6 6,921 6,062 +14 Revenues 1,898 1,572 +21 7,083 5,725 +24 Operating profit 171 121 +41 650 397 +64 - as a percentage of 9.0 7.7 9.2 6.9 revenues Industrial Technique Orders received 2,876 2,626 +10 11,42 10,55 +8 5 3 Revenues 3,161 2,730 +16 11,45 10,34 +11 4 5 Operating profit 378 271 +39 1,238 1,032 +20 - as a percentage of 12.0 9.9 10.8 10.0 revenues Rental Service Revenues 3,849 2,815 +37 13,95 7,434 +88 5 Operating profit 532 422 +26 1,855 1,010 +84 - as a percentage of 13.8 15.0 13.3 13.6 revenues More detailed information on the fourth quarter result is published in the interim report for the period. Forward-looking statements Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and the major customer credit losses. For further information, please contact: Annika Berglund, Senior Vice President, Group Communications, (media) phone +46 8 743 8070, mobile +46 70 322 8070, annika.berglund@atlascopco.com Mattias Olsson, Investor Relations Manager, (analysts) Phone +46 8 743 8291, mobile +46 70 518 8291, mattias.olsson@atlascopco.com ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/12/20010212BIT00830/bit0002.doc http://www.bit.se/bitonline/2001/02/12/20010212BIT00830/bit0002.pdf