Atlas Copco reports record orders in 1Q22
By Keefe Borden26 April 2022
Despite ongoing supply chain constraints, Atlas Copco reported an ongoing growth in revenue, orders placed, operating profits and return on capital for the first quarter, which ended March 31.
The company received orders of MSEK 40,379, up 33% from a year earlier. Revenues increased 16% to MSEK 30,086, profits before tax was MSEK 6,671, up 25% from a year earlier.
The demand for Atlas Copco’s products and services increased considerably compared to the previous year and exceeded the already high level of the fourth quarter last year. Order volumes for the service business continued to grow, Atlas Copco reported.
“The demand for the first quarter was better than we expected, and the order intake was on record levels for all business areas,” said Mats Rahmström, the company’s CEO. “Despite new uncertainties in the world, supply chain constraints, higher costs for components as well as new COVID-19 outbreaks, we delivered a healthy profit.”
Looking ahead, in the near-term, Atlas Copco expects that the customers’ activity level will remain high, but weaken compared to the very high level in the first quarter.
Atlas Copco’s compressor technique division remains its largest and most profitable, with revenues of MSEK 13,305 in Q1, up 15% from a year ago. Its return on capital employed in Q1 was 90%.
The company said the demand for industrial compressors was strong and that order volumes jumped from a year ago. Geographically, Atlas Copco had solid order growth in all major regions, particularly North America and Asia. Orders for gas and process compressors grew significantly from the previous year and the previous quarter.
The demand for service remained strong and orders grew in allregions. The company’s new range of compressed air filters helped customers optimize air quality and protect equipment by removing moisture, dust and oil aerosols.
At the end of Q1, the company had 43,989 employees, up from 40,482 a year earlier.