Energy drives Atlas Copco recovery
16 Jul 2010
Stockholm – Atlas Copco’s second quarter results show a recovery in overall demand for the group’s products and services, including continued strong growth in India, China, and Brazil, good progress in the US and solid improvement in Europe.
Orders received increased 33% organically to MSEK 19 221 (14 535) and revenues increased 9% organically to MSEK 17 430. Operating profit increased to MSEK 3 499 (2 066), corresponding to a margin of around 20%, compared to around 14% for the prior year period.
President and CEO Ronnie Leten said: “We have a fantastic business opportunity to reduce energy consumption. Most customers with older compressor installations will both reduce costs and lower their carbon dioxide emissions by changing to modern equipment.”
Up to 10% of the energy consumption in the manufacturing industry comes from compressed air systems. Atlas Copco’s energy efficient VSD-compressors help customers reducing that energy consumption by up to 35%.
Reviewing the near-term outlook, Leten said: “The overall demand for the group’s products and services is expected to increase somewhat. In emerging markets, demand is foreseen to develop favorably in all business areas. Demand in North America and parts of Europe is expected to increase gradually.”
