Atlas Copco (ATCO) Q4 2005 earnings summary

Executive summary

• Achieved record order growth, revenues, and operating profit in 2005, with strong performance across all business areas and regions.

• Orders received increased 24% year-over-year to MSEK 55,281, with double-digit growth in all regions and segments.

• Strategic focus on expanding in China, India, Russia, and the US resulted in high growth rates.

• Completed 14 acquisitions, enhancing market presence and product offerings.

• Divested the professional electric tools business and announced plans to divest the US-based Rental Service business.

Financial highlights

• Revenues rose 22% year-over-year to MSEK 52,742, with volume up 11% for comparable units.

• Operating profit increased 41% to MSEK 9,403, with an operating margin of 17.8% (up from 15.4%).

• Profit before tax grew 46% to MSEK 9,300, with a margin of 17.6%.

• Net profit for the period was MSEK 6,581, up 41% year-over-year.

• Basic earnings per share increased 41% to SEK 10.43.

• Strong operating cash flow of MSEK 4,521.

• Proposed dividend of SEK 4.25 per share and a mandatory redemption of SEK 6.67 per share.

Outlook and guidance

• Demand from all major customer segments expected to remain at current high levels.

• Continued focus on organic and acquired growth, innovation, and strengthening aftermarket services.