Atlas Copco announces record profits for third quarter

Sweden’s Atlas Copco reported revenues of SEK 18,4 billion (€ 1,6 billion) for the third quarter of 2008, a +12% increase on the same period last year. Along with improved sales, the company reported a record operating profit of SEK 3,6 billion (€ 363 million) for the quarter, up +16% on the same period in 2007 and representing a record operating margin of 19,7%.

Against the same quarter last year, organic growth for the Group increased by +13% and orders received increased by +9%.

“We are proud to have achieved another record result, with increased profitability thanks to our strong market position and higher revenue volumes,” said Gunnar Brock, president and CEO. “We were able to compensate for higher component costs with price increases,” continued Mr Brock.

“It is especially pleasing to note the strength of the aftermarket, which increased by up to +20% in all business areas,” said Mr Brock.

Caution

Despite strong sales in all geographical regions and particularly notable growth in South America and Africa, the company expects a decrease in demand in future quarters.

“It is evident that we are now in the midst of a financial crisis, but the extent of the influence that this will have on our operations is very difficult to judge,” said Mr Brock. “We are therefore implementing contingency measures aimed at reducing operating costs and increasing productivity,” confirmed Mr Brock.