Stockholm-based manufacturing company, Atlas Copco, has announced a larger-than-anticipated increase in net profit for the second quarter. Despite predicting a weakening in near-term demand from the current high level, the company remains optimistic due to strong order intake.
Net profit for the quarter rose to 6.94 billion Swedish kronor ($679.1 million), up from SEK5.68 billion the previous year. Revenue also experienced a significant increase of 31%, reaching SEK43.36 billion.
Financial analysts predicted net profit to reach SEK6.72 billion, slightly lower than the reported figure. Similarly, revenue was expected to be SEK40.87 billion, further highlighting Atlas Copco’s positive performance.
While the operating profit margin fell slightly from 22.0% to 21.9%, the adjusted margin saw a marginal improvement, rising to 21.9% from 21.3%.
Atlas Copco received orders worth SEK43.47 billion during the quarter, surpassing analysts’ forecast of SEK42.74 billion. This indicates the company’s ability to maintain strong demand for its products and services, despite not achieving the unusually high order intake of the previous quarter.
Although North America experienced a decline in order intake, Europe and Asia witnessed an increase.
Overall, Atlas Copco’s second quarter results demonstrate their resilience and ability to adapt in a challenging economic climate.