Atlas Copco Posts Earnings Miss, Sees Flat Near-Term Demand

By Dominic Chopping

STOCKHOLM--Atlas Copco fourth-quarter order intake and earnings missed forecasts and the company said it expects near-term customer demand to remain at the current level.

The Swedish industrial tool maker said net profit increased to 6.78 billion Swedish kronor ($620.7 million) in the quarter from SEK6.05 billion a year earlier, as revenue rose 12% to SEK44.95 billion.

Analysts polled by FactSet had expected net profit of SEK7.3 billion on revenue of SEK44.23 billion.

The operating profit margin rose to 20.2% from 19.5%, while the adjusted margin was 22.1% from 20.0%.

Atlas Copco received orders worth SEK36.84 billion in the quarter, missing a FactSet analysts' forecast of SEK39.44 billion.

"The overall demand for the group's equipment and services in the fourth quarter was basically unchanged compared to the previous year, but weaker than in the third quarter," Chief Executive Mats Rahmstrom said.

Overall order intake increased in North and South America, decreased in Europe, and remained unchanged in Asia.

The company lifted its dividend to SEK2.80 from SEK2.30.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

January 25, 2024 06:42 ET (11:42 GMT)

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