Stockholm, January 27, 2021

Disappointing Earnings for Atlas Copco

Atlas Copco, the Swedish industrial tool maker, reported fourth-quarter order intake and earnings that fell below analysts' expectations. The company also expressed its belief that customer demand will remain at its current level in the near term.

In the quarter, net profit increased to SEK6.78 billion ($620.7 million), up from SEK6.05 billion in the previous year. Revenue saw a 12% rise to SEK44.95 billion.

Missing Forecasts

Despite the increase in net profit and revenue, analysts polled by FactSet had expected higher net profit of SEK7.3 billion on revenue of SEK44.23 billion. The operating profit margin rose to 20.2%, with the adjusted margin at 22.1%.

Mixed Performance in Orders

Atlas Copco received orders worth SEK36.84 billion for the quarter, falling short of FactSet analysts' forecast of SEK39.44 billion. The overall demand for the company's equipment and services remained relatively unchanged compared to the previous year but was weaker than in the third quarter.

Order intake increased in North and South America but decreased in Europe. Meanwhile, Asia experienced no change in order intake.

Dividend Increase

As a positive note, Atlas Copco announced an increase in its dividend from SEK2.30 to SEK2.80.

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