Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Atlas Copco AB    ATCO A   SE0011166610

ATLAS COPCO AB

(ATCO A)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

SKF shares drop as demand outlook renews cyclical worries

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/22/2019 | 07:43am EST

STOCKHOLM (Reuters) - Sweden's SKF, the world's largest ball-bearing maker, forecast lower year-on-year demand in the fourth quarter, overshadowing in-line quarterly operating earnings and sending shares lower on Tuesday.

The rival of Germany's Schaeffler said it expected fourth-quarter demand to be lower versus the year-ago quarter, with slightly lower demand seen for its industrial business and lower demand seen for its automotive business.

SKF shares fell 3.5% following the results, reversing earlier gains.

Many analysts have questioned SKF's ability to defend its margins when demand is weakening for a business which has historically been sensitive to cyclical downturns. SKF's outlook has renewed those concerns.

But while weak car markets and slower industrial activity has now begun to eat into sales at the bearings maker, its profitability has so far proven quite resilient with an operating margin of 10.9% in the quarter, down from 12.2% a year ago.

"SKF has managed the business well in a weakening economic environment and our efforts to reduce costs are contributing to a strong and stable operating margin in the quarter," Chief Executive Alrik Danielson said in a statement.

Third-quarter operating earnings at the Gothenburg-based company fell to 2.29 billion Swedish crowns ($238 million) from 2.60 billion a year ago, to come in roughly in line with the 2.33 billion mean analysts' forecast in a Refinitiv poll.

The earnings also included a charge of 92 million crowns for non-recurring items.

SKF's higher-margin industrial business accounts for around 70% of group sales, while its automotive business makes up for the rest.

The company's earnings came after stronger than expected results from Swedish industrial peers Sandvik and Atlas Copco over the past week. SKF shares had risen 13% in October in the run-up to the results.

(Reporting by Johannes Hellstrom; editing by Niklas Pollard)

Stocks mentioned in the article
ChangeLast1st jan.
ATLAS COPCO AB 0.97% 363.8 Delayed Quote.71.16%
SANDVIK AB 1.41% 179.5 Delayed Quote.40.09%
SCHAEFFLER 0.54% 10.2 Delayed Quote.36.77%
SKF 1.43% 184.8 Delayed Quote.35.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ATLAS COPCO AB
11/06ATLAS COPCO : has acquired WestRon, a Canadian distributor of compressors and bl..
AQ
10/25Epiroc's third-quarter earnings miss and order fall hits shares
RE
10/25ATLAS COPCO : to acquire German supplier of dispensing solutions
AQ
10/25ATLAS COPCO : Ex-dividend day for final dividend
FA
10/22EUROPE : European shares rise amid Brexit tussle as focus shifts to earnings
RE
10/22SKF shares drop as demand outlook renews cyclical worries
RE
10/21Demand from chipmakers boosts Atlas Copco third quarter results, shares surge
RE
10/21ATLAS COPCO : Shares Higher as Orders and Profit Beat Forecasts
DJ
10/21ATLAS COPCO : Order and revenue growth with solid profitability
AQ
10/21ATLAS COPCO : Third-quarter report 2019 (unaudited)
AQ
More news
Financials (SEK)
Sales 2019 104 B
EBIT 2019 22 678 M
Net income 2019 16 706 M
Debt 2019 8 887 M
Yield 2019 1,82%
P/E ratio 2019 26,3x
P/E ratio 2020 25,1x
EV / Sales2019 4,17x
EV / Sales2020 3,92x
Capitalization 425 B
Chart ATLAS COPCO AB
Duration : Period :
Atlas Copco AB Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends ATLAS COPCO AB
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Average target price 304,32  SEK
Last Close Price 363,80  SEK
Spread / Highest target 0,33%
Spread / Average Target -16,4%
Spread / Lowest Target -42,3%
EPS Revisions
Managers
NameTitle
Mats Rahmström President, Chief Executive Officer & Director
Hans Torgny Stråberg Chairman
Hans-Ola Meyer Chief Financial Officer, SVP-Controlling & Finance
Anders Gerhard Ullberg Independent Director
Johan Patrik Lennart Forssell Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
ATLAS COPCO AB71.16%44 043
FANUC CORPORATION31.35%37 231
ROPER TECHNOLOGIES29.69%35 967
INGERSOLL-RAND41.07%30 836
PARKER HANNIFIN31.86%25 263
FORTIVE CORPORATION5.87%24 054