Atlas Copco Q1 2010 results

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Atlas Copco Q1 2010 results

  1. 1. Atlas Copco Group Q1 Results April 28, 2010
  2. 2. Contents <ul><li>Q1 business highlights </li></ul><ul><li>Market development </li></ul><ul><li>Business areas </li></ul><ul><li>Financials </li></ul><ul><li>Outlook </li></ul>
  3. 3. Q1 - highlights <ul><li>Strong recovery in order intake </li></ul><ul><ul><li>Significant growth in most emerging markets and in mining </li></ul></ul><ul><ul><li>Record order level in Asia and South America </li></ul></ul><ul><ul><li>Positive development in North America and still weak in Europe </li></ul></ul><ul><li>Sales of aftermarket products and services increased </li></ul><ul><li>Operating profit margin at 17.2% </li></ul><ul><ul><li>Cost and efficiency measures, price and a favorable sales mix gave support </li></ul></ul><ul><li>Strong operating cash flow </li></ul>
  4. 4. Q1 - figures in summary <ul><li>22% organic order growth </li></ul><ul><li>Revenues of MSEK 15 301; 3% organic decline </li></ul><ul><li>Operating profit at MSEK 2 627 (2 172) </li></ul><ul><ul><li>Operating margin of 17.2% (14.5 adjusted for restructuring) </li></ul></ul><ul><ul><li>Restructuring cost of MSEK 230 in 2009 </li></ul></ul><ul><li>Profit before tax at MSEK 2 497 (1 794) </li></ul><ul><li>Basic earnings per share SEK 1.52 (1.13) </li></ul><ul><li>Operating cash flow MSEK 2 223 (2 851) </li></ul>
  5. 5. Contents <ul><li>Q1 business highlights </li></ul><ul><li>Market development </li></ul><ul><li>Business areas </li></ul><ul><li>Financials </li></ul><ul><li>Outlook </li></ul>
  6. 6. Orders received - local currency March 2010 Group total +28% Effect of cancellations +5%, structural change +1% A B A = Portion of sales, Year-to-date, % B = Year-to-date vs. prev. year, % 10 +60 16 +47 35 +7 12 +16 21 +37 6 +76
  7. 7. Q1 - the Americas <ul><li>Positive development in North America </li></ul><ul><ul><li>Strong demand for mining equipment </li></ul></ul><ul><ul><li>Sales of industrial and construction equipment and aftermarket improved </li></ul></ul><ul><li>Continued growth in South America </li></ul><ul><ul><li>Good demand for all types of equipment </li></ul></ul><ul><ul><li>Order intake at record level </li></ul></ul>March 2010 10 +60 16 +47 A B A = Portion of sales, Year-to-date, % B = Year-to-date vs. prev. year, %
  8. 8. Q1 - Europe and Africa/Middle East <ul><li>Still weak demand in Europe </li></ul><ul><ul><li>Southern Europe remained weak, while some positive development was noted in Germany and in the Nordic countries </li></ul></ul><ul><ul><li>Solid aftermarket </li></ul></ul><ul><li>Some growth in Africa / Middle East </li></ul><ul><ul><li>Increased order intake of mining and industrial equipment </li></ul></ul>March 2010 A B A = Portion of sales, Year-to-date, % B = Year-to-date vs. prev. year, % 35 +7 12 +16
  9. 9. Q1 - Asia and Australia <ul><li>Record order intake in Asia </li></ul><ul><ul><li>Growth in India, China and many other markets for most types of equipment. </li></ul></ul><ul><ul><li>Negative development in Japan and South Korea. </li></ul></ul><ul><li>Strong mining demand in Australia </li></ul><ul><ul><li>Sales of construction equipment improved </li></ul></ul>March 2010 A B A = Portion of sales, Year-to-date, % B = Year-to-date vs. prev. year, % 21 +37 6 +76
  10. 10. Organic * growth per quarter <ul><li>Change in orders received in % vs. same quarter previous year </li></ul>Atlas Copco Group, continuing operations *Volume and price
  11. 11. Atlas Copco Group – sales bridge
  12. 12. Contents <ul><li>Q1 business highlights </li></ul><ul><li>Market development </li></ul><ul><li>Business areas </li></ul><ul><li>Financials </li></ul><ul><li>Outlook </li></ul>
  13. 13. Atlas Copco Group Revenues, operating profit and return on capital employed (ROCE) by business area
  14. 14. Compressor Technique <ul><li>Improved demand </li></ul><ul><ul><li>10% organic order growth vs. Q1 2009 </li></ul></ul><ul><ul><li>Growth drivers were emerging markets and North America </li></ul></ul><ul><ul><li>Improved demand for portable compressors from low levels </li></ul></ul><ul><li>Increased aftermarket business </li></ul><ul><li>Operating margin at 20.6% </li></ul><ul><ul><li>Positively affected by cost and efficiency measures, sales mix and price. </li></ul></ul><ul><li>Acquisition of Quincy Compressor finalized </li></ul><ul><ul><li>Except the Chinese operations, where approvals are expected in the second quarter </li></ul></ul>February 2, 2010, www.atlascopco.com
  15. 15. Compressor Technique *Volume and price
  16. 16. Construction and Mining Technique <ul><li>38% organic order growth vs. Q1 2009 </li></ul><ul><ul><li>Strong demand from mining industry </li></ul></ul><ul><ul><li>Sales to construction customers improved from low levels with notable improvement in emerging markets and in road construction equipment </li></ul></ul><ul><ul><li>Growth in service, spare parts and consumables </li></ul></ul><ul><li>Operating margin at 15.4% </li></ul><ul><ul><li>Affected positively by revenue mix, price, and improved utilization in manufacturing, but negatively by currencies. </li></ul></ul>
  17. 17. Construction and Mining Technique *Volume and price
  18. 18. Industrial Technique <ul><li>27% organic order growth vs. Q1 2009 </li></ul><ul><ul><li>Record order intake in Asia. </li></ul></ul><ul><ul><li>Sales in North America increased significantly, but from low levels. </li></ul></ul><ul><ul><li>Aftermarket developed positively. </li></ul></ul><ul><li>Operating profit margin at 16.4% </li></ul><ul><ul><li>Lower costs thanks to restructuring measures and improved prices supported the margin. </li></ul></ul>
  19. 19. Industrial Technique *Volume and price
  20. 20. Contents <ul><li>Q1 business highlights </li></ul><ul><li>Market development </li></ul><ul><li>Business areas </li></ul><ul><li>Financials </li></ul><ul><li>Outlook </li></ul>
  21. 21. Group total
  22. 22. Profit bridge January – March, 2010 vs 2009
  23. 23. Profit bridge – by business area January – March, 2010 vs 2009
  24. 24. Balance sheet
  25. 25. Capital structure Net Debt*/EBITDA * Net Debt adjusted for the fair value of interest rate swaps
  26. 26. Atlas Copco AB’s loan maturity profile
  27. 27. Cash flow * Operating cash surplus after tax in 2009 is adjusted for equity hedges in net financial items.
  28. 28. Contents <ul><li>Q1 business highlights </li></ul><ul><li>Market development </li></ul><ul><li>Business areas </li></ul><ul><li>Financials </li></ul><ul><li>Outlook </li></ul>
  29. 29. Near-term outlook <ul><li>The overall demand for the Group’s products and services is expected to improve somewhat from current levels. </li></ul><ul><li>  Demand in most emerging markets is foreseen to develop favorably in all business areas. Demand in North America is expected to increase gradually, whereas Europe is expected to remain largely unchanged. </li></ul>
  30. 30.
  31. 31.
  32. 32. Cautionary Statement <ul><li>“ Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially and adversely affected by other factors such as the effect of economic conditions, exchange-rate and interest-rate movements, political risks, the impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and major customer credit losses.” </li></ul>

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