Growth and solid margin end a record year for Atlas Copco
Mats Rahmström, President and CEO of the Atlas Copco Group, comments on the interim report for Q4 and full-year summary for 2019. (Image source: Atlas Copco)
During the fourth quarter 2019 order volumes for large industrial compressors grew, while the order intake for smaller stationary and portable compressors decreased. The orders for equipment to the automotive industry decreased significantly. Compared to the same quarter previous year there was a strong increase of sales of vacuum equipment. The service business, as well as the specialty rental business, continued to grow.
“The activity level in most end markets weakened during the last quarter”, said Mats Rahmström. “Despite this the order intake increased and revenues were record high. We focus on the opportunities although there will certainly be challenges ahead as well”.
Orders received in the fourth quarter grew to MSEK 25 652 (23 743), an organic growth of 1 percent. Revenues were MSEK 27 319 (25 321), up 1 percent organically. Reported operating profit decreased 1 percent to MSEK 5 627 (5 661), corresponding to a margin of 20.6 percent (22.4). Excluding items affecting comparability, the adjusted operating profit increased 7 percent to MSEK 5 913 (5 549), corresponding to a margin of 21.6 percent (21.9).
The return on capital employed was 30 percent (33).
The Board of Directors proposes a dividend of SEK 7.00 (6.30), to be paid in two installments.
“Atlas Copco has the financial strength to focus on where we want to be in the future and invest in the innovation needed to take us there. Our long-term success is achieved through talent, team work and persistence with many small actions contributing to the greater whole”, said Mats Rahmström.
Looking ahead, in the near-term, the demand for Atlas Copco’s products and services is expected to be somewhat lower than the level in the fourth quarter.
Source: Atlas Copco AB