SWEDEN – Global supplier of compressors, vacuum solutions and air treatment systems, construction equipment, power tools and assembly systems Atlas Copco has reported record revenues and operating profits Q2.  

According to a release from the company, revenues increased 18% organically to MSEK 43 364 (US$4.2 billion). Operating profit was MSEK 9 189 (US$895 million), corresponding to a margin of 21.2% (22.0). 

Adjusted operating profit, excluding items affecting comparability, reached MSEK 9 488 (US$924 million), corresponding to a margin of 21.9% (21.3). Return on capital employed was 30% (28). 

Order intake in the second quarter was however down 5% reaching MSEK 43 471 (US$4.237 billion). In Compressor Technique the equipment orders were on a solid level and service continued to grow. 

For Vacuum Technique the demand for equipment was weaker, and significantly so for the semiconductor and flat panel industry, while the order growth for service was solid.  

In Industrial Technique the strong order growth was primarily driven by increased demand from the automotive industry while Power Technique order intakes continued to be high supported by recent acquisitions.  

The specialty rental business continued to develop positively. All business areas achieved increased organic revenues and record operating profits in the quarter. 

 “The last couple of years, we have increased our investments in R&D, and we have also increased our focus on acquisitions,” said Mats Rahmström, President and CEO of the Atlas Copco Group 

 “To grow our existing business, creating new platforms for growth to meet global trends and customers’ needs going forward is an important part of our strategy.” 

He highlighted energy efficiency and alternative sources of energy, automation and localization are examples of trends where, through leading technology and service, Atlas Copco is well positioned to continue to support customers as well as society going forward. 

J.P.Morgan said Wednesday’s beat was “more than offset” by more cautious guidance, whilst Jefferies said it was surprised by the increased inventory build up. 

Persistent supply chain challenges and higher costs have weighed on Atlas in recent quarters, while its customers are scaling back investments 

Looking ahead, in the near-term, Atlas Copco expects that the customer activity level will weaken somewhat compared to the current high level. 

To boost revenues however, completed the acquisition of the cryopump service and distribution business of ZEUS Co., Ltd.  

The business provides service and sales distribution for the Vacuum Technique business area’s CTI and Polycold products in South Korea. 

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