Gunnar Brock comments on Atlas Copco’s Q4 results

February 2, 2009

Stockholm, Sweden, February 2, 2009: Atlas Copco today reported increased revenues for the fourth quarter, while the global economic downturn led to a sharp decline in order intake. Actions to reduce capacity and costs were implemented during the quarter.
Revenues during the fourth quarter increased 12% to MSEK 19 731, with organic growth of 3%. The organic decline in order intake was 19%. Operating profit reached MSEK 3 288 (3 361), corresponding to an operating margin of 16.7% (19.2%). Excluding redundancy costs of MSEK 258, the profit was MSEK 3 546, or 18.0%.

“Overall, we are pleased with our financial performance during the quarter, and we have acted quickly and decisively in adapting to the rapid and substantial decline in demand, particularly within the mining industry,” says President and CEO Gunnar Brock. “Our businesses have already achieved a great deal and their work will continue throughout 2009.”

During the quarter, the workforce was reduced by about 1 350 people, affecting all three business areas, and other cost saving measures were introduced.

“The current economic situation makes the outlook very uncertain but demand is expected to remain very weak in most industries and regions in the near term,” Gunnar Brock says. “The government stimulus packages recently introduced, primarily aimed at infrastructure projects, are expected to give support for construction equipment demand.”

Atlas Copco expects continued growth in demand for service, spare parts and consumables. All business areas recorded growth in the aftermarket during the fourth quarter.

Atlas Copco AB’s Board of Directors is proposing to the Annual General Meeting an unchanged dividend to the shareholders of SEK 3.00 per share, corresponding to 36% of earnings per share (49%).

For further information please contact:
Daniel Frykholm, Media Relations Manager
+46 (0)8 743 8060 or +46 (0)70 865 8060

Atlas Copco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.

Atlas Copco is a world leading provider of industrial productivity solutions. The products and services range from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. In close cooperation with customers and business partners, and with 136 years of experience, Atlas Copco innovates for superior productivity. Headquartered in Stockholm, Sweden, the Group’s global reach spans more than 160 markets. In 2008, Atlas Copco had
34 000 employees and revenues of BSEK 74 (BEUR 7.7). Learn more at www.atlascopco.com.