Atlas Copco up on higher third-quarter orders, bullish demand forecast
Shares in Swedish mining equipment and compressor maker Atlas Copco (STO:ATCO-A) soared Wednesday after it posted a 30% rise in net profit and said demand for its products was expected to would remain at the current high level.
The company, Sweden’s largest industrial group, said order bookings in the third quarter of the year went up by 17% on a like-for-like basis to 30.6 billion Swedish crowns (about $3.76 billion), boosted by mining gear as well as vacuum equipment orders.
Firm is fine-tuning details for a group split that will see its mining, infrastructure and natural resources business trade as a new company in 2018.
Referring to the strategic split of the group into two listed companies in 2018, President and CEO Mats Rahmström said the process was progressing according to plan.
The divestment of the Road Construction Equipment division to Fayat Group was completed earlier this month, he said, while Epiroc — a fully-owned subsidiary of Atlas Copco with focus on customers in the mining, infrastructure and natural resources industries — will be listed on the stock exchange next year.
"Provided shareholders approve the proposal at the Annual General Meeting next year, there will be two innovative companies with strong teams that can focus even more on creating value for customers,” Rahmström said in a separate statement.
Atlas Copco’s shares were up 2.3% to 345.20 at 2:54PM in Stockholm. They had climbed 10% over the past three months, outperforming a 3% gain in the STOXX 600 Industrial Goods & Services index .SXNP.