Atlas Copco Forecasts Improved Demand as Mining Orders StabilizeNiclas Rolander
Atlas Copco AB, the world’s largest maker of air compressors, forecast improved demand in the coming months as investment in mining equipment stabilizes.
“It is encouraging to see a positive demand development from the manufacturing industry, and that the order intake for mining equipment has stabilized,” Chief Executive Officer Ronnie Leten said in a statement.
Net income in the second quarter rose 2 percent to 3.2 billion kronor ($468.4 million) from a year earlier, the company said today, matching analysts’ estimates. Atlas Copco stock traded 2.1 percent higher at 201 kronor as of 12:17 p.m. in Stockholm.
Signs that a slowdown is easing in mining investment and in postponed projects amid falling commodity prices will be a boost to Atlas, which generates about 26 percent of its sales from the industry. While demand for mining equipment remained low in the second quarter, order intake was similar to that in the first quarter.
Group revenue in the second quarter increased by 7 percent to 23.3 billion kronor, helped by the addition of sales from British vacuum-pump maker Edwards Group, purchased by Atlas Copco for $1.5 billion. Analysts had expected revenue of 23.2 billion kronor.