Atlas Copco enjoys record margin
By Chris Sleight21 July 2008
Atlas Copco's Construction and Mining Technique division saw its sales rise to SEK 15,9 billion (€ 1,68 billion) in the first half of the year, a +40% increase on the first half of 2007. Operating profit was up +41% to SEK 2,88 billion (€ 303 million) for a record 18% operating margin.
The company said that apart from relatively weak demand from housing-related markets in Europe and North America, other construction markets remained strong. "Sales of drill rigs for surface applications remained healthy overall and sales of underground drilling rigs for infrastructure projects increased," it said in a statement.
However, the slowdown in house building in Europe and North America impacted sales of the division's other products. "Sales of light construction equipment and road construction equipment were flat compared to last year," it added.
Despite this slightly mixed picture, the Construction and Mining Technique group enjoyed a big rise in orders over the first six months of the year. Its order intake rose +38% to SEK 16,8 billion (€ 1,78 billion).
As a group, Atlas Copco saw a +23% increase in revenues to SEK 36 billion (€ 3,81 billion) in the first half of the year, with operating profit rising +23% to SEK 6,88 billion (€ 728 million).