Atlas Copco Posts 2Q Earnings Beat, Sees Somewhat Weaker Near-Term Demand

By Dominic Chopping

STOCKHOLM--Atlas Copco on Wednesday posted a larger-than-expected rise in second-quarter net profit, but cautioned that near-term demand will weaken somewhat from the current high level.

The Swedish industrial tool maker said net profit increased to 6.94 billion Swedish kronor ($679.1 million) in the quarter from SEK5.68 billion a year earlier, as revenue rose 31% to SEK43.36 billion.

Analysts polled by FactSet had expected net profit of SEK6.72 billion on revenue of SEK40.87 billion.

The operating profit margin slipped to 21.9% from 22.0%, while the adjusted margin edged higher to 21.9% from 21.3%.

Atlas Copco said it received orders worth SEK43.47 billion in the quarter, beating a FactSet analysts' forecast of SEK42.74 billion.

"The demand for the Atlas Copco Group's products and services remained strong even though the order intake did not reach the very high level of the previous quarter," the company said.

Order intake increased in Europe and Asia but decreased in North America, it added.

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

(END) Dow Jones Newswires

July 19, 2023 06:41 ET (10:41 GMT)

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