Atlas Copco still weathering the storm

Atlas Copco's Construction and Mining Technique (CMT) division reported total sales of SEK 26 billion (€ 2,5 billion) for 2009, a - 18% decline compared to the SEK 32 billion (€ 3,13 billion) recorded at the end of 2008.

Meanwhile, the company reported pre-tax profits of SEK 3,47 billion (€ 343 million) in 2009, a -38% fall compared to the SEK 5,6 billion (€ 554 million) the previous year.

The CMT division reported a -20 % decline in fourth quarter 2009 sales to SEK 6,39 billion (€ 633 million) from SEK 8 billion (€ 792 million) during the same period in 2008. The division made a pre-tax profit of SEK 904 million (€ 89 million), down -29% on the SEK 1,28 billion, (€ 127 million) reported in the fourth quarter of 2008.

The division's order intake over the course of the fourth quarter was SEK 6,58 billion (€ 651 million), a + 20% increase on the SEK 5,47 billion (€ 542 million) seen in fourth quarter of 2008. However, the company said demand remained weak within most parts of the construction segment.

A higher order intake was noted in underground drilling equipment for infrastructure projects such as tunnelling and hydropower and there has been growth in the aftermarket and consumables divisions partly due to increased mining activity. The best development was recorded in Europe and Asia, whereas sales in North America declined.

Sales of light equipment also improved from very low levels, mainly as a result of improved demand from distributors and rental companies. Sales of drilling rigs for surface applications used in quarries and road construction remained on a low level. Order intake for road construction equipment improved slightly compared to the previous quarter.

In the mining segment, Atlas Copco said order intake improved compared to previous quarters. However, the cancellations in the fourth quarter of 2008 meant order volumes for mining equipment were still below the previous year.

Overall Atlas Copco as a group saw revenues fall -19% to SEK 15,9 billion (€1,58 billion) in the fourth quarter of the year. Its pre-tax profit fell -25% to SEK 2,45 billion (€ 242 million).

President and CEO of the Atlas Copco Group, Ronnie Leten said, "Going for growth once again, we must continue focusing on innovation, making sure that products and services are also developed suited to the needs of customers in markets such as China and India.

"We will continue to extend and broaden our presence in emerging markets, while continuing to put efforts into the markets which are already significant for Atlas Copco."