Atlas Copco order intake tops forecast, sees stable demand

STOCKHOLM: Atlas Copco, 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 and Pfeiffer Vacuum, rose in the wake of the results to trade 0.2% higher by 1018 GMT compared to a 2% decline ahead of the news.