Atlas Copco: Healthy Profitability in Tough Market Conditions
“We are proud of our ability to withstand tough market conditions,” said Mats Rahmström. “Despite the considerable effects on the global economy, caused by the ongoing COVID-19 pandemic, we have kept profitability and cash flow at healthy levels, which allows us to continue investing for the future.” The demand for all types of equipment, except for equipment to the semiconductor industry, suffered from the effects of COVID-19. To a lesser extent, the pandemic also affected the service business negatively. The exception was also here the semiconductor industry, which recorded a strong order increase.
Orders received in the second quarter decreased to MSEK 22 401 (26 565), an organic decline of 17%. Revenues reached MSEK 24 102 (25 580), an organic decline of 8%. Reported operating profit decreased 28% to MSEK 3 889 (5 379). Adjusted operating profit, excluding items affecting comparability, decreased 20% to MSEK 4 476 (5 622), corresponding to a margin of 18.6% (22.0). The return on capital employed was 26% (33).
“We are fostering a culture where everyone is encouraged to bring ideas to the table”, said Mats Rahmström. “These past months, we have focused on working together to learn, adapt and even accelerate important initiatives. We have managed to team up across functions to support our customers and local communities. I am impressed and proud of the level of commitment I have experienced among our employees.”
In the near-term, although the world’s economic development remains uncertain, Atlas Copco expects that the near-term demand for the Group´s equipment and services will improve somewhat compared to the level in the second quarter.
Source: Atlas Copco AB