Atlas Copco still sees slowdown, reassures on semicon outlook (updated)

Pfeiffer Vacuum Technology AG

17/11/2022 12:38

(Adds quotes from capital markets day)
       STOCKHOLM, Nov 17 (Reuters) - Swedish industrial group
Atlas Copco  ATCOa.ST  said on Thursday it was reaffirming its
outlook for softer demand in the final months of the year as
customer activity weakened somewhat from the high level seen in
the third quarter. 
    The maker of compressors, vacuum pumps and industrial tools
cautioned investors last month that it expected weaker demand in
the near-term after a third quarter where its order intake grew
6% on a like-for-like basis and profits beat market forecasts.
        However, a slump in order intake for its Vacuum
Technique business, which counts the semiconductor industry
among its main customers and accounts for roughly a quarter of
group revenues, unnerved investors at the time. 
  
    Sweden's biggest company by market value hosted a capital
markets day for investors on Thursday and Geert Follens, who
leads the business area, said the unit's current order book
would take it "a long way into the new year" while cancellations
were not material relative to its size.
        The company's vacuum gear business, which competes with
the likes of Pfeiffer Vacuum  PV.DE , is an important indicator
for Atlas as it typically offers a forward-looking gauge of
demand also for the broader group.
  
        Follens said he expected continued growth from
semiconductor producers in China, which account for a huge
portion of global output and where restrictions due to COVID-19
outbreaks have dented output this year, with growing stability
seen within a quarter.
  
 (Reporting by Niklas Pollard and Marie Mannes, additional
reporting by Agata Rybska, editing by Anna Ringstrom)
 ((Niklas.Pollard@thomsonreuters.com;))