By Dominic Chopping

STOCKHOLM--Atlas Copco AB on Wednesday posted a bigger-than-expected rise in third quarter net profit, but said it expects near-term business activity to weaken.

The Swedish industrial tool maker said net profit increased to 6.53 billion Swedish kronor ($588.8 million) in the quarter from SEK4.56 billion, as revenue rose 37% to SEK38.07 billion.

Analysts polled by FactSet had expected net profit of SEK5.78 billion on revenue of SEK35.11 billion.

Atlas Copco said it received orders worth SEK40.56 billion in the quarter, up 23% on year and beating a FactSet analysts' forecast of SEK38.32 billion.

Demand remained high in the quarter, and order volumes increased markedly for compressors and power equipment compared with the previous year, the company said.

Due to weaker demand from the semiconductor industry, the order intake for vacuum equipment was lower, it added.

"Acquisitions are an important part of our growth strategy... We continue to look for potential targets to complement and future-proof our offering, for example within new sustainable technologies," said Chief Executive Mats Rahmstrom.

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

(END) Dow Jones Newswires

October 19, 2022 06:33 ET (10:33 GMT)

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