SWEDEN – Atlas Copco, a Swedish multinational industrial company, has announced a robust performance for the first quarter, surpassing expectations with a strong order intake and profit.
The company predicts that demand will remain at the current level in the near term, despite certain fluctuations in specific segments.
In a statement released on Wednesday, Atlas Copco highlighted the solid demand for its equipment and services, although the order intake did not reach the exceptionally high level of the previous year’s comparison quarter.
Despite this, the order volumes for industrial compressors remained stable, while orders for gas and process compressors showed a slight decrease from the previous year’s exceptional level.
The company noted an increase in the order intake for vacuum equipment for the semiconductor industry, while orders for industrial and scientific vacuum equipment experienced a decrease.
Orders for industrial assembly equipment and vision solutions for the automotive industry remained steady, with an increase observed in orders for the general industry.
However, there was a marked decrease in the order intake for power and flow equipment compared to the previous year, primarily due to lower demand from equipment rental companies in North America. On the positive side, the service business, including specialty rental, continued to grow, with increased order intake across all business areas and regions.
In terms of financial performance, Atlas Copco reported an 8 percent increase in revenues, reaching SEK 42,875 million (US$3.92M), with organic growth at 7 percent. The operating profit also saw a 7 percent increase to SEK 9,345 million (US$854,507.08).
The company attributed the higher margin in the compressor business to increased organic revenues, despite negative currency effects and minor dilution from acquisitions.
In the vacuum technique business, revenues slightly decreased organically by 3 percent, reaching SEK 9,719 million (US$888,705.65), with an operating profit of SEK 2,119 million (US$193,761.42). The margin was affected by lower revenue volumes and an unfavorable sales mix, although currency had a positive impact.
The company also disclosed the sale of series A shares during the quarter, in line with mandates granted by the Annual General Meeting and related to the Group’s long-term incentive programs.
Looking ahead, Atlas Copco remains optimistic about its prospects, maintaining a strong return on capital employed of 30 percent and a return on equity of 31 percent.
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