Atlas Copco Boosts Shareholder Payout Despite 4Q Profit Miss

By Dominic Chopping

STOCKHOLM--Swedish industrial tool maker Atlas Copco AB on Tuesday posted a smaller-than-expected a rise in fourth-quarter net profit but proposed a higher dividend as well as an extra shareholder payout via a share redemption.

The company said net profit increased to 4.89 billion Swedish kronor ($528.6 million) in the quarter from SEK4.2 billion, as revenue rose 15% to SEK29.53 billion.

Analysts polled by FactSet had expected net profit of SEK5.0 billion on revenue of SEK29.8 billion.

Atlas Copco said it received orders worth SEK33.53 billion in the quarter, up 30% on the year and beating a FactSet analysts' forecast of SEK32.32 billion.

In addition to an ordinary dividend for 2021 of SEK7.60 a share from SEK7.30 the previous year, an extra distribution of SEK8.00 a share is being proposed through a mandatory redemption of shares, it said.

Every share is split into one ordinary share and one redemption share and the redemption share is automatically redeemed at SEK8.00 a share, it added.

The company is also proposing a 4:1 share split of its ordinary shares.

Atlas Copco said it expects the near-term customer business activity level to remain at the current high level.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

January 25, 2022 06:40 ET (11:40 GMT)

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