ATLAS Copco’s has suffered a fall in first quarter revenues due to the impact of the global economic crisis.
The company implemented actions to reduce capacity and costs at a high pace throughout the period.
Gunnar Brock, President and CEO of the Atlas Copco says profitability is still very good bearing in mind the sharp fall in sales, the high costs for redundancy measures and under-absorption in most of its business units. He says that this is a proof of the resilience of its business model.
Since October 2008, major efforts have been carried out in order to adapt capacity and costs to the present low demand level. During these six months, 3 800 people have left the company and the workforce is likely to be reduced by around 1 200 more during the coming quarters.
Brock claims that although sales of equipment are down considerably, the company is pleased to have been able to maintain a good price level. Additionally, the aftermarket business is holding up very well.
The economic situation still makes the outlook very uncertain. Demand is however expected to remain weak in most industries and regions and stay around the current level.
Brock says that in these difficult times it is particularly important to concentrate on the aftermarket business and continue to invest in research and development. The firm’s financial strength allows it to focus on this and will help us come out of the crisis an even stronger company.
Add a comment