Atlas Copco Reports 11% Increase for Second Quarter 2017

Atlas Copco saw an 11% increase during the second quarter as orders for mining equipment rose significantly from a year ago, as did other segments of the company.

Atlas Copco, a leading provider of sustainable productivity solutions, has reported strong demand and record revenues and operating profit. In the near term, the overall demand for the group is expected to remain at current high levels.

Orders received in the second quarter grew to MSEK 30,797 (25,207), an organic increase of 11%. Revenues were MSEK 29,030 (24,565), and the adjusted operating profit margin was 21.5% (19.6). Growth was especially strong in Asia where all the business areas grew significantly. Among segments, the semiconductor industry continued to show robust demand for vacuum solutions, and orders for mining equipment rose significantly from a year earlier due to expansions of existing mines as well as investments to replace aging equipment.  

“We had a strong quarter thanks to our competent people, innovative products and services, and favorable business climate in most regions,” says Mats Rahmström, President and CEO of the Atlas Copco Group. “We offer what customers need to be productive and energy efficient - by using our solutions they buy their own success.”

Innovative products launched in the quarter include a new range of energy-efficient dryers with low noise level, a cost-efficient abatement system, a small and flexible system for tightening applications, a powerful drill bit range for increased productivity in mining and rock excavation, and LED-powered light towers with high performance and long lifetime.

Rahmström began his new role on April 27, becoming Atlas Copco’s 12th President and CEO since its foundation in 1873.

“I am proud to get the opportunity to lead this fantastic company,” Rahmström says. “I believe in building passionate teams that develop innovative solutions and constantly challenge themselves so that we create value for our customers.”

Other important events or announcements in the quarter included:    

  • Epiroc AB will be the name of the company to be dividended out in 2018; focus is on customers in the mining, infrastructure and natural resources industries 
  • The Construction Technique business area has changed name to Power Technique to better reflect the current products and customer segments. 
  • Vagner Rego was appointed President Compressor Technique, effective August 1, 2017. 
  • Cecilia Sandberg was appointed Senior Vice President Human Resources, effective October 1, 2017.