Atlas Copco CEO Ronnie Leten Comments on Q3 Results

Wed November 03, 2010 - National Edition

Atlas Copco recently reported third quarter results with record profits and a strong organic order growth. Asia, Australia and South America all reported record order intake.

Organic orders received increased 35 percent and revenues increased 18 percent organically. Sequentially, sales of mining and industrial equipment improved while the order intake for construction equipment weakened somewhat. Operating profit increased to a new record, corresponding to an operating margin of 21.3 percent including restructuring costs.

“Better market penetration, new innovative products and a fantastic development for our aftermarket business, combined with a further enhanced customer focus has paid off,” said Ronnie Leten, president and CEO of the Atlas Copco Group. “I am particularly pleased to see that our energy efficient solutions and our service offering has gained solid ground at customers in the emerging markets.”

All business areas launched new products and solutions offering higher productivity, better ergonomics, increased safety, and improved energy efficiency.

“We received some very large orders for mining and tunneling equipment from Kazakhstan and India and a major compressor order for the pipeline industry in Russia. These orders show a strong confidence in Atlas Copco’s products and services. In the quarter Atlas Copco acquired an Austrian mobile crushing operation, a Dutch biogas treatment company and a British drilling equipment company. These companies add complementary products to the Atlas Copco ranges. A new customer center was inaugurated in Panama and on the Group’s two largest markets — United States and China — new efficient distribution centers are established.

Atlas Copco also acquired a tool distributor in the United States to further penetrate the market.

“The overall demand for the Group’s products and services is expected to increase somewhat. The sequential improvement is primarily expected to come from emerging markets.”

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