Atlas Copco Profit Beats Estimates on U.S. Industrial Demand
Atlas Copco AB (ATCOA), the world’s largest maker of air compressors, reported profit that beat analysts’ estimates as North American industrial demand “remained healthy,” sending its shares up the most in almost four months.
Third-quarter net income fell to 3.48 billion kronor ($520 million) from 3.6 billion kronor a year earlier, the Stockholm- based company said today in a statement. That exceeded the average estimate of 3.42 billion kronor in a Bloomberg survey of 16 analysts.
“We are pleased with the profitability we have achieved and with how sales developed considering the mixed market conditions,” Chief Executive Officer Ronnie Leten said in a separate release.
Atlas Copco, which benefits when metals prices are high because miners buy more rock drills and blast-hole rigs, said near-term demand “is expected to decrease somewhat.” New orders rose 1.1 percent to 21.4 billion kronor in the quarter. Leten said Atlas would continue to put a “strong focus” on cost control and that the company will adapt capacity if necessary.
Atlas Copco rose as much as 7.8 kronor, or 5.2 percent, the biggest intraday gain since June 29, and traded up 4.6 percent at 158 kronor as of 12:27 in the Swedish capital.
To contact the reporter on this story: Ola Kinnander in Stockholm at firstname.lastname@example.org
To contact the editor responsible for this story: Benedikt Kammel at email@example.com