Worse than expected for the engineering giant – Private Businesses

Atlas Copco reports an operating profit of 4.17 billion kronor for the first quarter of 2016, giving an operating margin of 18 percent.

Analysts’ average forecast operating profit amounted to 4.352 billion crowns and 18.6 percent operating margin .

Sales amounted to 23.137 billion kronor for the period. Here lay SME Direkt consensus forecast of 23.376 billion crowns.

demand the same level

The overall demand for Atlas Copco’s equipment and services are expected to “remain at the current level. “

it writes Atlas Copco interim report under the heading” Market outlook in the short term “.

the forecast for the first quarter was that demand would remain in the short term.

Heavy mining segment

Atlas Copco’s sales of services and consumables business area mining and rock Excavation technique affected negatively by “several mines closed or reduced activity.”

it writes Atlas Copco in the report for the first quarter.

the service and spare parts business declined slightly both year on year and sequentially.

the margin of the mining division declined to 15.1 percent in the first three months, from 18.9 percent in the first quarter of 2015. analysts had expected 17.5 percent.

Atlas Copco writes that the business area will continue to identify and implement further efficiency measures.

“This includes the consolidation of production of consumables for the mining industry in the United States which will be completed in 2017,” it is said.

Vacuum Solutions strongly segment

segment as vacuum solutions had good demand in the first quarter, while order volumes were largely unchanged for industrial compressors and the negative of such surface drill rigs.

It says Atlas Copco’s CEO Ronnie Leten, commenting on the interim report, published in a separate press release .

“the demand for equipment investment is weak in many segments, while our service business continued to grow,” he said further.

the service business remained robust and grew for all activities except mining, says he.

Geographically, Ronnie Leten improved demand in Asia and Europe, while orders were lower in South America and Africa / Middle East. North America was largely unchanged.

Atlas Copco’s order intake was unchanged organically during the quarter.