Atlas Copco continues to cutback

Stockholm - Atlas Copco Group continued to reduce capacity and costs during the first quarter of 2009 in response to the impact of the global recession on its business. Revenues during the first quarter decreased 17% to MSEK16 577, excluding positive currency effects, while operating profit at MSEK2,172 and order intake were down by as much as a third.

During the six months to March 2009, around 3,800 people have left the company and the workforce is likely to be reduced by around 1,200 more during the coming quarters, Atlas Copco recently said. This, it noted, will result in an annual cost saving of more than MSEK2,000.

“Our profitability is still very good bearing in mind the sharp fall in sales, the high costs for redundancy measures and under-absorption in most of our business units. This is a proof of the resilience of our business model.” sid Gunnar Brock, president and CEO of Atlas Copco. “Although sales of equipment are down considerably, we are pleased to have been able to maintain a good price level. Additionally, the aftermarket business is holding up very well.”

Demand is expected to remain weak in most industries and regions and stay around the current level, predicted Brock, who concluded: “In these difficult times it is particularly important to concentrate on the aftermarket business and continue to invest in research and development. Our financial strength allows us to focus on this and will help us come out of the crisis an even stronger company.”