Atlas Copco sees slower demand near-term as profit lags forecasts (updated)

Pfeiffer Vacuum Technology AG

21/10/2021 11:32

(Adds detail, shares)
    STOCKHOLM, Oct 21 (Reuters) - Sweden's Atlas Copco
 ATCOa.ST  said on Thursday it expected near-term demand, while
still high, to weaken from the previous quarter after reporting
earnings below market forecasts, sending its shares down nearly
5%.
    Atlas Copco, which makes compressors, vacuum pumps and
industrial tools, said a strong order increase for vacuum
equipment to the semiconductor industry had been offset by
slower order intake for other products.
    It said it expected near-term demand to remain high, but
weaken compared to the very high level in the third quarter.
    Order intake at the firm, which competes with U.S. Ingersoll
Rand  IR.N  and Germany's Pfeiffer Vacuum  PV.DE  among others,
rose 36% from a year ago to 33.0 billion crowns, compared to
31.15 billion crowns in a Refinitiv analysts' poll. 
    "We have seen continued sequential order growth in some
customer segments, but the overall order volumes for the Group
did not increase compared to the previous quarter," Chief
Executive Mats Rahmstrom said in a statement.
    Atlas Copco reported an adjusted operating profit of 6.11
billion Swedish crowns ($711 million), up from 5.02 billion a
year earlier but missing the 6.62 billion mean forecast in a
Refinitiv analysts' poll.  urn:newsml:reuters.com:*:nL8N2RF35E
    Shares in Atlas - down 2.3% on Thursday ahead of the report
- extended losses and were down 4.5% at 1019 GMT, having gained
around 30% this year.

($1 = 8.5895 Swedish crowns)

 (Reporting by Helena Soderpalm; editing by Niklas Pollard)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))