| Key Figures (SEK million) | ||
|---|---|---|
| First quarter ended 31.12 | ||
| 2020 | 2019 | |
| Order Intake | 28 039 | 26 812 |
| Revenues | 25 098 | 24 181 |
| Of Which: | ||
| Compressor Technique | 11 588 | 11 397 |
| Cost of Goods Sold | 14 395 | 13 747 |
| Gross Profit | 10 703 | 10 434 |
| Marketing Expenses | 3080 | 2912 |
| Administrative Expenses | 1643 | 1734 |
| R&D Costs | 980 | 863 |
| Operating Profit | 5124 | 5048 |
| Of Which: | ||
| Compressor Technique | 2520 | 2618 |
| Net Profit before Income Taxes | 5010 | 4907 |
| Net Profit attributable to Atlas Copco | 3836 | 3698 |
Source: Atlas Copco Q1 2020 results.
COMMENT.
Swedish industrial equipment manufacturer Atlas Copco has made a solid start to fiscal 2020 with early gains in orders, revenue and profitability outweighing the later impact of Covid-19 on its first quarter results.
Revenues were up 3.8% on the year prior at SEK25.1 billion, although they fell three percentage points on an organic basis. Sales were up in three out of four of the company's operating segments, with an 8% decline in Industrial Technique being the exception.
Revenues in the firm's Compressor Technique segment, where filters along with dryers, coolers and gas purifiers form part of its offering for air and gas treatment equipment and medical air solutions, were up 1.7% to SEK11.6 million. Organic growth, however, was down four percentage points on the prior year, with equipment demand suffering from the general economic uncertainty.
The company's order intake was up 4.6% for the quarter on the previous year at SEK28.0 billion, although on an organic basis it was down 2% on the comparator period. New business was stronger in two out of four of Atlas Copco's operating segments with the Vacuum Technique sector leading the way with record orders of SEK7.1 billion, up 25.1% on the fiscal 2019 figure on the back of strong demand from semiconductor and electronics industries. The Compressor Technique division posted orders of SEK12.8 billion, up 2.2% on the year prior with an increase in service orders being a notable factor.
Atlas Copco's operating profit for the quarter also improved on the year earlier mark increasing 1.5% to SEK5.1 billion, although the Compressor Technique division suffered a 3.7% year-on-year decrease to finish at SEK2.5 billion.
Overall profit for the period was also up, increasing 3.7% on the prior period to reach SEK3.8 billion.