Atlas Copco Finance Chief Avoids Putting Cash in High-Risk Banks
Atlas Copco AB (ATCOA), the world’s largest maker of air compressors, has reviewed its bank deposit policy due to the euro crisis to ensure it avoids placing deposits in high-risk banks, Chief Financial Officer Hans Ola Meyer said.
Atlas Copco doesn’t have long-term funds sitting in banks, and money for short-term liquidity needs is spread between about 10 “core” global and regional banks, including in Sweden, Meyer said yesterday in a phone interview.
Avoiding high-risk banks is a “pretty normal activity but we have reviewed that” policy due to the growing euro crisis, he said, declining to identify any banks.
Atlas Copco is benefiting financially from a weakening euro since the manufacturer has more costs than revenue in the currency, Meyer said. The Stockholm-based company, whose home currency is the krona, has no specific plan for the event that the euro collapses and countries revert to their old currencies, he said.
“It’s very speculative to have a plan on what to do with currencies that don’t exist today,” he said. “We’d have to know more before we could plan for that.”
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