Sweden's Atlas Copco profit beats forecast as orders hit record (updated)

Pfeiffer Vacuum Technology AG

27/04/2021 11:25

(Adds detail, background)
    STOCKHOLM, April 27 (Reuters) - Engineering group Atlas
Copco  ATCOa.ST  said it expected demand to remain at the
current high level in the near term after posting first-quarter
earnings and order intake above market expectations on Tuesday.
    Atlas, Sweden's most valuable company by market
capitalisation, said the strong order growth was mainly due to
increased demand for vacuum equipment to the semiconductor
industry.
    The maker of compressors, vacuum pumps and industrial tools
reported an adjusted operating profit of 5.65 billion Swedish
crowns ($671.99 million), up from 5.10 billion a year earlier
and beating the 5.54 billion mean forecast in a Refinitiv
analysts' poll.
    Order intake rose 18% on an organic, or like-for-like, basis
to a record 30.5 billion crowns, topping analysts' expectations
at 28.8 billion crowns.
    "The customers’ activity level as well as their willingness
to invest in new equipment continued the improvement seen
already in the previous quarter," the company said in a
statement.
    "A large part was due to increased demand for vacuum
equipment to the semiconductor industry, but all business areas
achieved good growth for both equipment and service," Chief
Executive Mats Rahmstrom added.
    Shares in Atlas Copco, which rivals U.S. Ingersoll Rand
 IR.N  and Germany's Pfeiffer Vacuum  PV.DE , fell 0.4% at 1013
GMT, compared to a 1.1% decline ahead of the report.
    Atlas shares were up around 28% so far this year through
Monday. 
    
($1 = 8.4079 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))