Atlas Copco Posts 1Q Net Profit Beat; Business Activity to Remain High in Near-Term

By Dominic Chopping

STOCKHOLM--Swedish industrial tool maker Atlas Copco AB on Tuesday posted a slightly bigger-than-expected rise in first-quarter net profit, and said it expects business activity to remain at a high level in the near-term.

The company said net profit increased to 5.21 billion Swedish kronor ($536.5 million) in the quarter from SEK4.2 billion, as revenue rose 16% to SEK30.09 billion.

Analysts polled by FactSet had expected net profit of SEK5.08 billion on revenue of SEK30.95 billion.

Atlas Copco said it received orders worth SEK40.38 billion in the quarter, up 33% on the year and beating a FactSet analysts' forecast of SEK34.6 billion.

"The demand for the first quarter was better than we expected, and the order intake was on record levels for all business areas," said Chief Executive Mats Rahmstrom.

"Despite new uncertainties in the world, supply chain constraints, higher costs for components as well as new Covid-19 outbreaks, we delivered a healthy profit."

Although the world's current economic development makes the outlook uncertain, Atlas Copco said it expects the near-term customer business activity level to remain at a high level, but weaken compared with the very high level in the first quarter.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

April 26, 2022 05:34 ET (09:34 GMT)

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