First publishedon www.AggBusiness.com
Mats Rahmström, President and CEO of the Atlas Copco Group
At Atlas Copco’s annual meeting, Epiroc was reported as discontinued operations, and it was decided to distribute the subsidiary to the shareholders of Atlas Copco and list the company on Nasdaq Stockholm Stock Exchange.
Epiroc develops and produces innovative drill rigs, rock excavation and construction equipment, and provides service and consumables.
Mats Rahmström, President and CEO of the Atlas Copco Group, said Epiroc showed a strong organic order growth and solid profitability in the quarter.
“We had a very strong start of the year”, he said, commenting on Atlas Copco’s results for Q1 2018..
“Going forward Atlas Copco has an even stronger focus on industrial customers and on creating value through innovative products and service. We are a company that always has embraced change to become even better”.
Orders received for the Atlas Copco Group grew 6% to SEK 24,829 million (SEK 23,325 in Q1 2017), an organic increase of 9%.
The revenues increased with 6% to SEK 21,906 million (SEK 20,578 million) an organic increase of 9%, while the operating profit margin increased to 22% (21%) in spite of negative currency impact.
Good order growth was achieved from both equipment and services even though the comparison numbers in the first quarter of last year were high.
“Customer activity was high, and we had good traction for our new products and service offering”, says Mats Rahmström.
The subsidiary Epiroc showed a strong organic order growth and solid profitability in the quarter.
Innovative products launched in the quarter include a dryer for the medical air market that offers low energy costs and helps customers to reduce costly losses of air; a vacuum pump system with innovative multi-claw design and variable speed drive; a TwinPower generator with increased flexibility and less fuel consumption, and a new, low reaction, battery pulse tightening tool.
In the quarter Atlas Copco acquired Location Thermique Service SAS, a French steam boiler specialty rental business; Walker Filtration, a British manufacturer of equipment for the treatment of compressed air, gas, and vacuum, and the assets of Klingel Joining Technologies, a German company that specialises in flow drill technology.
Also in the quarter Atlas Copco completed the divestment of the concrete and compaction business to Husqvarna Group.