Atlas Copco maintains healthy profit
22 October 2009
Atlas Copco's Construction and Mining Technique (CMT) division had revenues of SEK 5,98 billion (€ 579 million) in the third quarter of the year, a -23% fall on the same period in 2008. Despite the fall, it achieved an operating profit of SEK 823 million (€ 80 million), down -43% on Q3 2008, but still giving the business a 13.8% profit margin.
The division's order intake over the course of the quarter was SEK 5,65 billion (US$ 548 million), a -28% decline on the level of SEK 7,88 billion (€ 764 million) seen in Q3 2008.
The company said demand from the construction sector remained weak all over the world, with the exception of Asia and South America. Indeed, it described demand for road construction equipment in these parts of the world as "relatively strong", with growth compared to last year.
In the mining segment, Atlas Copco said activity has picked up over the last few months, although this was reflected in higher inquiries rather than higher orders. Again, South American and Asia were the strongest regions in the world.
Overall Atlas Copco as a group saw revenues fall -18% to SEK 15,1 billion (€ 1,46 billion) in the third month of the year. Its net profit fell -29% to SEK 1,73 billion (€ 168 million).
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