Stockholm - Industrial tool maker Atlas Copco has announced its third-quarter financial results, revealing a larger-than-expected rise in net profit. However, the company has also cautioned that it anticipates a weakening in customer demand in the near term, compared to the previous three months ending September 30.
Net Profit Soars to SEK7.8 Billion
During the third quarter, Atlas Copco's net profit climbed to SEK7.8 billion ($701.2 million), up from SEK6.53 billion in the same period last year. The increase in net profit was supported by a 17% rise in revenue, reaching SEK44.49 billion. Analysts polled by FactSet had predicted a net profit of SEK7.3 billion on revenue of SEK43.64 billion, indicating that the company surpassed expectations.
Profit Margins Show Positive Growth
The operating profit margin for the quarter rose from 22.0% to 22.7%, while the adjusted margin slightly increased to 22.7% from 22.2%. This positive performance highlights Atlas Copco's effective cost management and overall efficiency.
Strong Order Intake
The company received orders worth SEK42.61 billion in the quarter, surpassing FactSet analysts' forecast of SEK41.76 billion. Despite this overall positive trend, order volumes for vacuum equipment saw a significant decrease due to lower demand from the semiconductor industry. In contrast, orders for large industrial compressors increased, while order volumes for smaller industrial compressors and gas and process compressors remained unchanged.
Atlas Copco reported increased order intake in Europe and Asia, while North America experienced no change.
Despite these impressive results, the company anticipates a decline in customer demand in the coming months. Nevertheless, Atlas Copco remains focused on delivering value to its customers and maintaining its strong position in the market.