Atlas Copco Lifts Dividend After Forecast-Beating Earnings

By Dominic Chopping

STOCKHOLM--Swedish industrial tool maker Atlas Copco AB on Friday posted forecast-beating fourth-quarter earnings and proposed a higher full-year dividend.

The company said it received orders worth 25.87 billion Swedish kronor ($3.10 billion) in the quarter ended Dec. 31, beating a FactSet analyst forecast of SEK24.9 billion.

"Looking ahead, in the near-term, 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," the company said.

Net profit fell to SEK4.2 billion from SEK4.33 billion, as revenue slipped 5.8% to SEK25.74 billion.

Analysts polled by FactSet had expected net profit of SEK3.99 billion on revenue of SEK25.89 billion.

The company proposed a SEK7.30 dividend, up from SEK7.00.

Atlas Copco said the overall demand for its products and services improved both compared with the previous year and the previous quarter.

During the fourth quarter, demand was very strong from the semiconductor industry, but orders also increased in other product categories, like industrial compressors, medical equipment, equipment for automotive applications, supported by increased investments in electrical vehicle and battery production, and power equipment, it added.

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

(END) Dow Jones Newswires

January 29, 2021 06:42 ET (11:42 GMT)

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