Sharp warning signs from Atlas Copco – Swedish Dagbladet

Ronny Leten CEO of Atlas Copco. Photo: Janne Næss

It turns fast on the stock exchange and engineering stocks has this week invited the real Hawaii Trade. SKF’s CEO Mr. Danielson scared Wednesday impact on the entire engineering sector with negative organic growth and bleak prospects. But on Thursday delivered both Alfa Laval, Atlas Copco quarterly results were the shares to rush.

Atlas Copco’s report certainly was barely in line with expectations and sales fell 3 percent organically. Atlas report was certainly no spot cannonball.

The grim fact that SKF does not show any organic growth also applies to Atlas Copco. Sales decreased by 3 percent and new orders globally were unchanged.

Atlas Copco yellow canaries , as the company’s small and medium-sized compressors are called, is a cyclical characters to keep track of. Nicknamed compressors have received from the canaries before use, to assess air quality in the mines. When they fell silent, it was high time to seek shelter. And right now buying Chinese companies fewer small and medium sized compressors.

– It is really tough in China. They have not stopped buying, they are buying less, says Atlas Copco’s CEO Ronnie Leten.

But while he thinks that one should not look too much by the chirping of birds.

– Brazil a tough market. But where it is not bad for the Yellow Canaries as the saying does not fit in anywhere, he explains.

Ronnie Leten satisfied with profitability, but not with the organic growth.

When will we see organic growth?

– Have we reached the bottom of mining equipment? There is a question mark. China will fall even more? Also a question mark. Europe and India are positive, but we need to work more on other parts.

While other CEOs have seen signs of a weak Europe stands Ronnie Leten at another stage.

I have not seen any signs that allowed me to see the negative in Europe. In Italy, Spain, Germany and France, the four big economies, investing companies.

– I have not seen any signs that allowed me to see the negative in Europe. In Italy, Spain, Germany and France, the four big economies, investing companies. I do not see what other colleagues have seen. But I could be wrong, of course, says the Atlas-chief.

Atlas Copco’s decision to not hedge was very favorable in the quarter. The weaker exchange rate, revenues increased by nearly SEK 3 billion in the quarter, to 26 billion. Tailwind from a weaker krona will continue the rest of the year, but slightly reduced performance.