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
Real-time Estimate Quote. Real-time Estimate CHI-X EUROPE LIMITED. - 11/30 04:19:22 pm
434.3000 SEK   -1.23%
11/27ATLAS COPCO : Report from Extraordinary General Meeting in Atlas Copco AB
AQ
11/27ATLAS COPCO AB : Ex-dividend day for final dividend
FA
11/26ATLAS COPCO : Report from Extraordinary General Meeting in Atlas Copco AB
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Atlas Copco : Quarterly Report Q3 2020

10/22/2020 | 02:35am EST

Press release from Atlas Copco AB

October 22, 2020

Atlas Copco

Third-quarter report 2020

Sequential improvement but below previous year

The comparison figures presented in this report refer to previous year unless otherwise stated.

  • Order intake decreased 11% to MSEK 24 246 (27 102), organic decline of 6%
  • Revenues reached MSEK 24 849 (26 676), organic decline of 2%
  • Adjusted operating profit, excluding items affecting comparability, decreased 15% to MSEK 5 021 (5 880), corresponding to a margin of 20.2% (22.0)
  • Reported operating profit was MSEK 4 760 (5 843), corresponding to a margin of 19.2% (21.9)
  • Profit before tax amounted to MSEK 4 696 (5 778)
  • Basic earnings per share were SEK 2.98 (3.64)
  • Operating cash flow at MSEK 5 143 (4 643)
  • Return on capital employed was 24% (32)
  • The Board of Directors proposes a dividend of SEK 3.50 per share to be paid in the fourth quarter

July - September

January - September

MSEK

2020

2019

2020

2019

Orders received

24 246

27 102

-11%

74 686

80 479

-7%

Revenues

24 849

26 676

-7%

74 049

76 437

-3%

Operating profit

4 760

5 843

-19%

13 773

16 270

-15%

- as a percentage of revenues

19.2

21.9

18.6

21.3

Profit before tax

4 696

5 778

-19%

13 532

16 000

-15%

- as a percentage of revenues

18.9

21.7

18.3

20.9

Profit for the period

3 618

4 424

-18%

10 587

12 212

-13%

Basic earnings per share, SEK

2.98

3.64

8.71

10.05

Diluted earnings per share, SEK

2.97

3.63

8.70

10.04

Return on capital employed, %

24

32

Near-term demand outlook

Although the world's economic development remains uncertain, Atlas Copco expects that the demand for the Group's products and services will remain at current level.

Previous near-term demand outlook (published July 16, 2020):

Although the world's economic development remains uncertain, Atlas Copco expects that the near-term demand for the Group´s equipment and services will improve somewhat compared to the level in the second quarter.

Quarterly and annual financial data in Excel format can be found at: https://www.atlascopcogroup.com/en/investor-relations/financial-reports-presentations/latest-results

Atlas Copco Group Center

Atlas Copco AB

Visitors address:

Telephone: +46 8 743 8000

A Public Company (publ)

SE-105 23 Stockholm

Sickla Industriväg 19

www.atlascopcogroup.com

Reg. No: 556014-2720

Sweden

Nacka

Reg. Office Nacka

Atlas Copco - Q3 2020

Summary of nine-month results

Orders received in the first nine months of 2020 decreased by 7% to MSEK 74 686 (80 479), corresponding to an organic decline of 8%. Acquisitions contributed with 3% and currency had a negative effect of 2%. Revenues were MSEK 74 049 (76 437), corresponding to a 4% organic decline.

Operating profit decreased by 15% to MSEK 13 773

(16 270). The operating margin was 18.6% (21.3). Adjusted for items affecting comparability, the margin was 19.7%

2 (19)

(21.9). There was a negative impact of changes in exchange rates for the first nine months of MSEK -290.

Profit before tax was MSEK 13 532 (16 000), corresponding to a margin of 18.3% (20.9). Profit for the period totaled MSEK 10 587 (12 212). Basic and diluted earnings per share were SEK 8.71 (10.05) and SEK 8.70 (10.04) respectively.

Operating cash flow before acquisitions, divestments and dividends totaled MSEK 12 451 (9 541).

Review of the third quarter

Market development

The overall demand for Atlas Copco's products and services improved compared to the previous quarter, both for equipment and service. However, the ongoing COVID-19 pandemic continued to have a dampening effect on the business climate.

Compared to the previous year, the service business held up well, and the order intake increased, while the demand for equipment was mixed. Order volumes for small and medium-sized compressors and industrial vacuum equipment increased, while orders for most other equipment types did not reach the previous year's level. Overall, and compared to previous year, the order intake increased in Europe and South America, but decreased in all other regions.

Geographic distribution of orders received

Atlas Copco Group

July - September 2020

Orders Received, %

Change*, %

North America

23

-8

South America

4

+4

Europe

30

+3

Africa/Middle East

5

-2

Asia/Oceania

38

-4

Atlas Copco Group

100

-3

*Change in orders received compared to the previous year in local currency.

Sales bridge

July - September

Orders

MSEK

received

Revenues

2019

27 102

26 676

Structural change, %

+3

+2

Currency, %

-8

-7

Organic*, %

-6

-2

Total, %

-11

-7

2020

24 246

24 849

*Volume, price and mix.

Orders, revenues and operating profit margin

30 000

30%

25 000

25%

20 000

20%

15 000

15%

10 000

10%

5 000

5%

0

0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020

Orders received, MSEK

Revenues, MSEK

Operating margin, %

Adjusted operating margin, %

Geographic distribution, orders received and revenues

July - September 2020

Compressor Technique, %

Vacuum Technique, %

Industrial Technique, %

Power Technique, %

Atlas Copco, %

Orders

Revenues

Orders

Revenues

Orders

Revenues

Orders

Revenues

Orders

Revenues

received

received

received

received

received

North America

21

21

20

22

31

31

25

30

23

24

South America

6

5

0

0

2

2

7

6

4

3

Europe

34

35

15

15

37

35

36

35

30

30

Africa/Middle East

6

7

3

2

1

2

9

8

5

5

Asia/Oceania

33

32

62

61

29

30

23

21

38

38

100

100

100

100

100

100

100

100

100

100

Resolution for a second dividend

The Board of Directors has resolved to propose a dividend of SEK 3.50 per share which will be paid for the fiscal year 2019, corresponding to a total of MSEK 4 256. Accordingly,

the Board of Directors will issue a notice to an Extraordinary General Meeting on November 26, 2020. Record date for the payment will be November 30, 2020.

Atlas Copco - Q3 2020

Revenues, profits and returns

Revenues decreased 7% to MSEK 24 849 (26 676), corresponding to an organic decline of 2%. Acquisitions added 2% while currency had a negative effect of 7%.

The operating profit was MSEK 4 760 (5 843) and

includes a MSEK -160 restructuring cost in the Industrial Technique business area, and a change in provisions for share-relatedlong-term incentive programs, reported in Common Group Items of MSEK -101(-37).

Adjusted operating profit decreased 15% to MSEK 5 021 (5 880), corresponding to a margin of 20.2% (22.0). Currency and dilution from recent acquisitions were the main explanations for the lower margin.

The net currency effect compared to the previous year was negative MSEK 660, mainly due to the weaker USD.

Net financial items were MSEK -64(-65) and interest net was MSEK -66(-90). Other financial items, including financial exchange differences, were MSEK +2 (+25). Profit before tax amounted to MSEK 4 696 (5 778), corresponding to a margin of 18.9% (21.7).

Corporate income tax amounted to MSEK -1 078 (-1 354), corresponding to an effective tax rate of 23.0% (23.4).

Profit for the period was MSEK 3 618 (4 424). Basic and diluted earnings per share were SEK 2.98 (3.64) and SEK 2.97 (3.63), respectively.

The return on capital employed during the last 12 months was 24% (32). Return on equity was 27% (39). The Group uses a weighted average cost of capital (WACC) of 8.0% as an investment and overall performance benchmark.

Operating cash flow and investments

Operating cash surplus decreased to MSEK 6 023 (6 798), due to the lower operating profit. Cash was released by a significant reduction of working capital, which decreased by MSEK 1 707 (decrease of 237). Net investments in rental equipment were MSEK -59(-336) and net investments in property, plant and equipment were

Revenues and operating profit - bridge

3 (19)

MSEK -333(-176). Previous year's net investments in property, plant and equipment included proceeds from a sale and lease back transaction in the US of approximately MSEK 200.

Operating cash flow (important internal KPI, but not an IFRS measurement, and hence defined on page 14) reached MSEK 5 143 (4 643).

Net indebtedness

The Group's net indebtedness increased to MSEK 18 662

(13 205), due to the recent acquisitions. MSEK 3 543 (3 637) of the net debt was attributable to post-employment benefits. The Group's interest-bearing liabilities have an average maturity of 5.0 years. The net debt/EBITDA ratio was 0.8 (0.5) and the net debt/equity ratio was 33% (26).

Acquisition and divestment of own shares

During the quarter, 704 575 A shares net, were sold for a net value of MSEK 289. These transactions are in accordance with mandates granted by the Annual General Meeting and relate to the Group's long-term incentive programs. See page 18.

Employees

On September 30, 2020, the number of employees was 39 759 (38 418). The number of consultants/external workforce was 2 756 (3 231). For comparable units, the total workforce decreased by 856 from September 30, 2019.

Items affecting

Volume, price,

comparability and

Share-based

MSEK

Q3 2020

mix and other

Currency

acquisitions

LTI* programs

Q3 2019

Atlas Copco Group

Revenues

24 849

-542

-1 955

670

-

26 676

Operating profit

4 760

-184

-660

-175

-64

5 843

19.2%

21.9%

*LTI= Long term incentive

Atlas Copco - Q3 2020

Atlas Copco acquires ISRA VISION

On February 10, it was announced that Atlas Copco will partner with the global machine vision specialist ISRA VISION AG through a voluntary public takeover offer. All offer conditions were fulfilled during the second quarter.

The settlement of the offer was completed on June 24, 2020 and in connection with that a payment of MSEK 9 028 (MEUR 860) was made to ISRA VISION shareholders.

Together with payments made for previous share purchases of MEUR 150, Atlas Copco has paid MSEK 10 604 (MEUR 1 010) for 92.19% of ISRA VISION. On August 3, it was announced that Atlas Copco has requested a squeeze out of minority shareholders in ISRA VISION AG.

ISRA VISION specializes in machine vision solutions with leading technologies for surface inspection and 3D vision for robot guidance, quality inspection and 3D metrology operating through two business segments, Industrial Automation and Surface Vision. The company has a global presence with operations in over 25 locations and more than 800 employees and is headquartered in Darmstadt, Germany. ISRA VISION will continue to operate under the same brand with its headquarters in Darmstadt and be a part of the Industrial Technique business area.

4 (19)

From the date of control, revenues were MSEK 420 and operating profit MSEK 10, corresponding to an operating margin of about 2%, including negative purchase price allocation effects of MSEK 50.

A preliminary purchase price allocation is outlined below.

MSEK

Intangible assets

4 100

Property, plant and equipment

200

Other assets

1 700

Cash and cash equivalents

300

Interest-bearing liabilities and borrowings

-500

Other liabilities and provisions

-1 800

Net identifiable assets

4 000

Non-controlling interests

-300

Goodwill

6 900

Total consideration

10 600

SEK / EUR 10.50 at date of acquisition.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Atlas Copco AB published this content on 22 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2020 06:34:02 UTC


© Publicnow 2020
All news about ATLAS COPCO AB
11/27ATLAS COPCO : Report from Extraordinary General Meeting in Atlas Copco AB
AQ
11/27ATLAS COPCO AB : Ex-dividend day for final dividend
FA
11/26ATLAS COPCO : Report from Extraordinary General Meeting in Atlas Copco AB
AQ
11/05ATLAS COPCO : to acquire European distributor of vacuum equipment and service so..
AQ
11/04ATLAS COPCO : to acquire European distributor of vacuum equipment and service so..
AQ
10/26ATLAS COPCO : Third quarter of 2020 sequential improvement but below previous ye..
AQ
10/26ATLAS COPCO : Notice of Extraordinary General Meeting in Atlas Copco AB
AQ
10/22ATLAS COPCO : Quarterly Report Q3 2020
PU
10/22ATLAS COPCO : Quarterly results presentation Q3 2020
PU
10/22ATLAS COPCO : Proposes SEK3.50 Dividend as Earnings Meet Expectations
DJ
More news
Financials
Sales 2020 99 782 M 11 757 M 11 757 M
Net income 2020 14 490 M 1 707 M 1 707 M
Net Debt 2020 14 756 M 1 739 M 1 739 M
P/E ratio 2020 36,6x
Yield 2020 1,62%
Capitalization 512 B 60 294 M 60 340 M
EV / Sales 2020 5,28x
EV / Sales 2021 4,93x
Nbr of Employees 39 759
Free-Float 81,9%
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 25
Average target price 389,78 SEK
Last Close Price 439,70 SEK
Spread / Highest target 9,17%
Spread / Average Target -11,4%
Spread / Lowest Target -31,8%
EPS Revisions
Managers
NameTitle
Mats Rahmström President, Chief Executive Officer & Director
Hans Torgny Stråberg Chairman
Hans-Ola Meyer Chief Financial Officer, SVP-Controlling & Finance
Johan Patrik Lennart Forssell Independent Director
Mikael Bergstedt Director
Sector and Competitors
1st jan.Capitalization (M$)
ATLAS COPCO AB17.69%60 294
FANUC CORPORATION26.91%47 569
PARKER-HANNIFIN CORPORATION32.57%35 143
STANLEY BLACK & DECKER, INC.13.26%30 076
SANDVIK AB7.42%28 975
FORTIVE CORPORATION-6.49%24 086