Atlas Copco posts higher than expected Q3 revenues, acquires Polish compressed air distributor Vector
SWEDEN – Atlas Copco, a leading Swedish industrial equipment manufacturer, has beat analyst forecasts to report a 37% rise in quarter three (Q3) revenues to 38.07 billion Swedish kronor (US$3.36 billion) and an underlying profit of SEK6.53 billion (US$588.8 million).
Analysts polled by FactSet had expected a net profit of SEK5.78 billion (US$510 million) from revenue of SEK35.11 billion (US$3.10 billion).
The higher revenues and profits were driven by high demand, with the company’s order volumes increasing markedly for compressors and power equipment compared with the previous year.
Vacuum equipment however posted low order volumes during the quarter due to what Atlas Copco described as weaker demand from the semiconductor industry
Overall, the company received orders worth SEK40.56 billion in the quarter, up 23% year on year and beating a FactSet analyst’s forecast of SEK38.32 billion.
Although the quarter was impressive, Atlas Copco is not as optimistic in its medium-term outlook, noting that it expects near-term business activity to weaken “somewhat compared to the high level in the third quarter.”
During the quarter, the company has been aggressive in its acquisition strategy, scooping up 11 new businesses, bringing the number of companies that have joined the Group so far this year to 21.
“Acquisitions are an important part of our growth strategy… We continue to look for potential targets to complement and future-proof our offering, for example within new sustainable technologies,” said Chief Executive Mats Rahmstrom.
A few days before the release of Q3 results, Atlas Copco announced that it had acquired Polish-based compressed air distributor, Vector.
Based in the Polish city of Tarnowo Podgórne, Vector is a privately owned company with 23 employees that serves a wide range of industrial companies in the country.
The company noted that the acquisition will see it gain more knowledge and expertise in the sale, installation, and service of compressed air systems.
On the purchase of the firm, Vagner Rego, Business Area President Compressor Technique, said, “Vector has a strong market recognition in the Polish market, and great expertise. The acquisition will enable us to strengthen our presence in the area.”
Atlas Copco has confirmed that Vector will become part of the Service division within the Compressor Technique Business Area.
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