Atlas Copco Earnings Beat, Demand Expected to Remain at Current Level

By Dominic Chopping

STOCKHOLM--Atlas Copco's first-quarter order intake and earnings beat 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 7.17 billion Swedish kronor ($663.2 million) in the quarter from SEK6.52 billion a year earlier, as revenue rose 7.6% to SEK42.88 billion.

Analysts polled by FactSet had expected net profit of SEK6.95 billion on revenue of SEK42.25 billion.

The operating profit margin was flat at 21.8%, while the adjusted margin was 22.1% compared with 21.7% in the same period a year prior.

Atlas Copco received orders worth SEK45.66 billion in the quarter, beating a FactSet analysts' forecast of SEK42.27 billion.

Order intake increased in Europe, South America, and Africa/Middle East but decreased in North America and Asia, it said.

"The overall demand for the Atlas Copco Group's equipment and services was solid, although the order intake didn't reach the high level of the comparison quarter in the previous year," outgoing Chief Executive Mats Rahmstrom said.

Rahmstrom said late last year that he would step down after seven years in the job. Vagner Rego, currently president of the company's compressor technique business, will take over from May 1.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

April 24, 2024 05:46 ET (09:46 GMT)

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