Atlas Copco Interim report at September 30, 2007 Strong sales and profit growth · Solid market conditions and improved market position. · Double-digit growth continued in all regions. - 15% organic order growth. - 22nd consecutive quarter with organic growth. · Revenues reached MSEK 16 431 (12 538), organic growth 19%. · Operating profit increased 36% to MSEK 3 127 (2 306), a margin of 19.0% (18.4). · Profit before tax was MSEK 2 708 (2 081). · Profit for the period was MSEK 1 890 (2 117). - Profit from continuing operations increased 28% to MSEK 1 890 (1 475). · Earnings per share from continuing operations were SEK 1.54 (1.17). · Basic and diluted earnings per share were SEK 1.54 (1.68). · Operating cash flow for continuing operations was MSEK 1 586 (916). July - September January - September MSEK 2007 2006 % 2007 2006 % Orders received 17 388 13 847 +26 50 243 41 108 +22 Revenues 16 431 12 538 +31 45 806 36 930 +24 Operating profit 3 127 2 306 +36 8 705 6 739 +29 - as a percentage of revenues 19.0 18.4 19.0 18.2 Profit before tax 2 708 2 081 +30 8 400 6 313 +33 - as a percentage of revenues 16.5 16.6 18.3 17.1 Profit from continuing operations 1 890 1 475 +28 6 040 4 493 +34 Profit from discontinued operations, net of tax - 642 53 1 708 Profit for the period 1) 1 890 2 117 6 093 6 201 Basic earnings per share from continuing operations, SEK 1.54 1.17 +32 4.93 3.56 +38 Basic earnings per share, SEK 1) 1.54 1.68 4.97 4.92 Diluted earnings per share, SEK 1) 1.54 1.68 4.97 4.91 1)Including discontinued operations. Near-term demand outlook The demand for Atlas Copco's products and services from most customer segments and regions is expected to remain at the current high level. The positive outlook includes the main part of the construction segment, while construction related to housing is expected to slow down, primarily in North America. Atlas Copco Group Summary of nine-month results Orders received in the first nine months of 2007, increased 22%, to MSEK 50 243 (41 108). Volume for comparable units increased 16%, price increases added 2% and structural changes 9%, while the negative currency translation effect was 5%. Revenues increased 24%, to MSEK 45 806 (36 930), corresponding to 17% volume growth. Operating profit increased 29% to MSEK 8 705 (6 739), which corresponds to a margin of 19.0% (18.2). The negative impact of changes in exchange rates compared with the previous year was approximately MSEK 650 for the first nine months. Profit before tax amounted to MSEK 8 400 (6 313), up 33% and corresponding to a margin of 18.3% (17.1). This includes an MSEK 134 capital gain from divestment of shares in connection with the initial public offering of common stock in RSC Holdings Inc. Profit from continuing operations increased 34% to MSEK 6 040 (4 493). Profit for the period totaled MSEK 6 093 (6 201), including MSEK 53 (1 708) from discontinued operations. Basic earnings per share were SEK 4.97 (4.92) and diluted earnings per share were 4.97 (4.91). Earnings per share from continuing operations were SEK 4.93 (3.56). Operating cash flow before acquisitions, divestments and dividends totaled MSEK 3 663 (2 591). Review of the third quarter Market development In North America, the demand for industrial equipment and its related aftermarket products increased, supported by a good investment level in most segments. Demand for advanced assembly tools and systems from the motor vehicle industry, however, decreased compared to the previous year. The mining industry, particularly in Mexico and Canada remained very active with strong increases in demand for drilling and loading equipment as well as for consumables. The demand from the construction market was somewhat weaker than in previous quarters but still at a healthy level. InSouth America, the positive development of demand continued. The very strong growth in Brazil improved further and substantial sales increases were noted for compressors, mining and construction equipment and industrial tools. Demand was also strong in the other countries in the region. Demand remained healthy in Europe. Investments in compressed air equipment and industrial tools from manufacturing and process industries increased. The development in the mining industry continued to be very strong, while the demand for construction equipment leveled off in some countries. The strongest growth in order intake was noted in Eastern Europe and the Nordic countries. TheAfrica/Middle Eastregion continued to develop very positively. Mining demand remained high and sales of construction and industrial equipment grew strongly in Northern Africa and the Middle East. Demand for all types of equipment was good throughout Asia, with particularly strong increases in China and India, the two biggest markets. In Australia, the demand from most customer segments remained strong. For further information Atlas Copco AB SE-105 23 Stockholm, Sweden Phone: +46 8 743 8000, Fax: +46 8 644 9045 Internet: www.atlascopco.com Corp. id. no: 556014-2720 Analysts Ingrid Andersson, Investor Relations Manager, Phone: +46 8 743 8290 or +46 70 497 8290 ir@se.atlascopco.com Media Daniel Frykholm, Media Relations Manager, Corporate Communications, Phone: +46 8 743 8060 or +46 70 865 8060
Atlas Copco Interim report at September 30, 2007
| Source: Atlas Copco AB