Atlas Copco reports strong organic sales growth

Words: Daniel Abitboul/Public/News/20110814151000-1.jpg" width="600" height="338" border="0" alt="Atlas Copco has posted record-high quarterly operating profit." />
Atlas Copco has posted record-high quarterly operating profit.
Atlas Copco reported strong organic sales growth and a record-high quarterly operating profit. Demand was good in all business areas and the Group continued to make investments in sustainable, profitable growth.

“Our deliveries and invoicing levels are improving and we are proud to again report a record profit for the quarter. We also achieved a strong operating margin, even with significant currency headwind,” says Ronnie Leten, President and CEO of the Atlas Copco Group.

Orders received increased 29% organically to MSEK 22 202, while the organic revenue growth was 27% to MSEK 19 951 (17 430). Operating profit increased to MSEK 4 177 (3 499), corresponding to a margin of 20.9% (20.1). The operating profit was affected negatively by currency effects of MSEK 915, or almost two percentage points compared to the previous year.

“We continued to develop our global market presence and product portfolio through investments and add-on acquisitions,” Ronnie Leten says. “Atlas Copco’s new business area structure, which came into effect on July 1, will support our long-term, profitable growth and drive further innovations for our customers’ increased productivity.”

Atlas Copco in May announced it will invest MSEK 160 in building a new factory for compressors in India. Other notable events during the quarter included significant orders from Saudia Arabia and Mexico and the launch of new products, such as a large silent demolition cutter and Atlas Copco’s most energy-efficient oil-free compressor yet.

“The overall demand for the Group’s products and services is expected to remain at the current high level,” says Ronnie Leten.
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