Weak Start of The Year

ATLAS COPCO Interim Report on the three months ended March 31, 1999 (unaudited) Weak start of the year January-March Change 1999 1998 % Revenues 7,751 8,108 -4 Operating profit 725 1,043 -30 - as a percentage of 9.4 12.9 revenues Profit after financial 557 881 -37 items - as a percentage of 7.2 10.9 revenues Earnings per share, 1.95 3.06 -36 SEK The Atlas Copco Group's revenues for the first three months of 1999 decreased 4 percent, to SEK 7,751 m. (8,108). Orders received decreased 3 percent, to SEK 8,156 m. (8,404). Foreign exchange fluctuations had a positive translation effect of 1 percentage point. The Atlas Copco Group's profit after financial items decreased, to SEK 557 m. (881). The profit margin was 7.2 percent (10.9). Outlook The outlook for Europe is still somewhat weak, mainly owing to continued low business confidence in Germany, although some sectors such as the automotive industry are expected to remain strong. Demand in North America is expected to remain at a healthy level. For the Asian region, growth in some markets, from a low level, is expected to compensate for the negative trend in demand in Japan. In South America, the extremely poor business conditions are expected to continue, mainly as a result of high interest rates and low metal prices. The latter is also expected to cause lower demand in southern Africa, while northern Africa and the Middle East should benefit from recent increases in oil prices. The overall demand for Atlas Copco's products is expected to remain at the present level in the near term. Operating profit margins are expected to benefit from the improvements in the cost structure made in the first quarter. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/04/20/19990420BIT00400/bit0001.pdf The Full Report http://www.bit.se/bitonline/1999/04/20/19990420BIT00400/bit0002.doc The Full Report