Atlas Copco order intake tops forecast, sees stable demand (updated)

Pfeiffer Vacuum Technology AG

29/01/2021 11:32

* Q4 order intake 25.9 bln SEK vs forecast 25.0 bln
    * EBIT also tops expectations
    * Demand seen staying at current level in near term
    * Demand lifted by strong chip sector, industrial
compressors  

 (Adds background, detail, shares, CEO comment)
    STOCKHOLM, Jan 29 (Reuters) - Atlas Copco  ATCOa.ST ,
Sweden's most valuable company by market capitalisation, on
Friday reported stronger than expected growth in order intake
and earnings slightly above market forecasts for the final three
months of 2020.
     The maker of compressors, vacuum pumps and industrial tools
said business activity had been very strong from the
semiconductor industry in the fourth quarter and forecast stable
overall demand ahead.
     "Although the world's economic development remains
uncertain, Atlas Copco expects that the demand for the Group's
products and services will remain at current level," CEO Mats
Rahmstrom said in a statement.
    The company reported an operating profit of 5.37 billion
Swedish crowns  ($643.75 million), down from 5.63 billion a year
earlier and slightly ahead of the 5.31 billion mean forecast in
a Refinitiv analysts' poll.
    Order intake rose 7% on a like-for-like basis to 25.9
billion crowns compared to analysts' expectations for 25.0
billion crowns. 
    Atlas said it had also seen firming demand in the fourth
quarter in areas such as industrial compressors, medical
equipment and gear for automotive applications, supported by
greater spending in electrical vehicle and battery production.
    Shares of Atlas Copco, which competes with the likes of
Ingersoll Rand  IR.N  and Pfeiffer Vacuum  PV.DE , rose in the
wake of the results to trade 0.2% higher by 1018 GMT compared to
a 2% decline ahead of the news.
    
($1 = 8.3418 Swedish crowns)

 (Reporting by Johannes Hellstrom; editing by Niklas Pollard)
 ((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))