Atlas Copco Posts 3Q Earnings Beat, Sees Weaker Near-Term Demand

By Dominic Chopping

STOCKHOLM--Atlas Copco on Wednesday posted a larger-than-expected rise in third-quarter net profit, but cautioned that near-term customer demand will weaken compared with the three months to Sep. 30.

The Swedish industrial tool maker said net profit increased to 7.8 billion Swedish kronor ($701.2 million) in the quarter from SEK6.53 billion a year earlier, as revenue rose 17% to SEK44.49 billion.

Analysts polled by FactSet had expected net profit of SEK7.3 billion on revenue of SEK43.64 billion.

The operating profit margin rose to 22.7% from 22.0%, while the adjusted margin edged higher to 22.7% from 22.2%.

Atlas Copco said it received orders worth SEK42.61 billion in the quarter, beating a FactSet analysts' forecast of SEK41.76 billion.

"Orders grew for large industrial compressors, while order volumes for smaller industrial compressors and gas and process compressors were unchanged," the company said.

"Order volumes for vacuum equipment decreased markedly, primarily but not exclusively, driven by the significantly lower demand from the semiconductor industry," it added.

Overall order intake increased in Europe and Asia but was unchanged in North America.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

October 25, 2023 06:41 ET (10:41 GMT)

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