Atlas Copco expects demand to stabilise

Atlas Copco reported second quarter sales of SEK 16,1 billion (€ 1,5 billion), down -14% on the SEK 18,8 billion (€ 1,8 billion) reported 12 months ago. Pre-tax profit for the second quarter fell -42% to SEK 1,9 billion (€ 190 million), down from SEK 3,3 billion (€ 328 million) recorded last year.

Ronnie Leten, president and CEO said, "The global demand for our products remained on a low level in the second quarter, and the Group continued implementing restructuring measures to adapt to capacity and costs and increase efficiency.

"In light of the tough situation, we have achieved a strong result and maintained strong cash flow," he said.

Since September 2008, Atlas Copco has reduced its workforce by 5440 staff to save in excess of SEK 2 billion (€ 196 million) per year.

"We expect demand to remain weak in most industries and regions for the near term, but that said, we expect demand to stay at the current level," said Mr Leten.

"We are continuing to invest in product development, services and market presence, and this is borne out through the June 2009 launch of our Carbon Zero compressors," he said.