Atlas Copco reports Q4 mixed demand, record revenues
By Keefe Borden26 January 2023
Atlas Copco closed out 2022 with a solid Q4, with gains in orders received, revenue and profits for the period. Operating cash flow slipped to MSEK 5930, down 11% from the previous year.
“Demand was mixed during the quarter and order volumes decreased, primarily due to lower order intake for vacuum equipment,” said Mats Rahmström, president and CEO of Atlas Copco Group. “Despite remaining supply chain challenges, revenues reached a new record level last year, as well as in the quarter.”
Order volumes for industrial compressors remained essentially unchanged, orders for portable compressors decreased and orders for vacuum equipment decreased significantly, driven by lower demand from the semiconductor industry. Order volumes for industrial assembly and vision solutions, as well as for gas and process compressors, on the other hand increased. Solid order growth was achieved for the service business in all business areas, the company said.
Revenues for Q4 increased 16% organically to MSEK 40,054. The company’s operating profit was MSEK 7810, up 25% from the previous year. The company’s operating margin was 20%, down from 21.9% a year earlier.
The margin fell in response to higher costs related to continued supply chain constraints, higher costs for purchased material, and dilutions from recent acquisitions, Atlas Copco said.
Looking ahead, in the near term, Atlas Copco expects that the customers’ activity level will remain at the current level.
The overall demand for Atlas Copco’s products and services remained high even if the activity level in several end markets weakened in Q4. Order volumes for industrial compressors remained essentially unchanged, and the order intake for portable compressors decreased compared to the previous year, Atlas Copco reported.
Order volumes for gas and process compressors, on the other hand, increased significantly. The demand for vacuum equipment from the semiconductor industry weakened and the order intake decreased markedly. Orders for vacuum equipment to industrial and scientific customers, however, increased, the company reported.
Order volumes for industrial assembly and vision solutions increased, driven by customers’ investments in the transition to electric vehicles. The service business continued to grow with increased order intake in all business areas. Overall, order volumes increased in Europe, South America, and Africa/Middle East, remained unchanged in North America but decreased in Asia compared to the previous year.
For the full year 2022, orders received reached MSEK 158,092, up 22%. Revenues were MSEK 141,325, up 27%. Profits rose 29% to MSEK 23,482.