Atlas Copcos President Comments on Second Quarter Results

President and CEO Ronnie Leten says Asia, and India in particular, were bright spots for Atlas Copco in the second quarter.

Atlas Copco, a leading provider of sustainable productivity solutions, reports stable order intake supported by a solid industrial business while demand for mining and construction weakened. The overall near-term demand for the group is expected to remain at its current level.

Orders received in the second quarter were MSEK 25 934 (26 775), negatively affected by currency. Demand was solid for industrial compressors and tools. The relatively low activity in the construction business and recent closure and downsizing of mines impacted the equipment and service business. Revenues were unchanged organically at MSEK 25 438, and the operating profit reached MSEK 4 755, corresponding to a margin of 18.8% (19.4).

"Bright spots in the quarter include Asia, especially India, where all business areas grew," says Ronnie Leten, President and CEO of the Atlas Copco Group.

Innovative products launched in the quarter include oil-free centrifugal compressors with remote monitoring capabilities, an electric tightening tool for enhanced productivity and ergonomics, a battery-driven underground loader with zero emissions, and user-friendly portable generators.

"Continuously improving customers’ productivity through innovative products and services is what drives us," Leten says.

Atlas Copco has made several acquisitions recently. The group acquired Kohler Druckluft, a compressor distributor in central Europe, as well as Bondtech, a Swedish supplier of dispensing equipment for adhesives and sealants. Atlas Copco also acquired Roxel Rental, a supplier of temporary air solutions for the Norwegian offshore industry, and agreed to acquire Schneider Druckluft, a German designer and producer of professional compressed air solutions, as well as CSK, a South Korean supplier of high-tech abatement solutions. Also, the acquisition of the Leybold vacuum business, announced in November 2015, has received full regulatory approvals and is expected to be completed on August 31, 2016.