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Research Tree provides access to ongoing research coverage, media content and regulatory news on ATLAS COPCO AB-A SHS. We currently have 7 research reports from 1 professional analysts.
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ATLAS COPCO AB-A SHS
ATLAS COPCO AB-A SHS
Recovery in progress led by Vacuum and Mining
01 Feb 17
Atlas Copco reported solid Q4 16 figures including: Q4 16 orders increased 19% yoy to SEK27,617m (versus SEK23,206m in Q4 15), corresponding to an organic growth of 7%. Q4 16 revenues increased 14% yoy to SEK28,495m (versus SEK25,003m in Q4 15), corresponding to organic growth of 2%. Operating profit increased 18% to SEK5,785m (versus SEK4,882m), corresponding to a margin of 20.3% (versus 19.5% in Q4 15). Record strong operating cash flow at SEK6,537m (versus SEK5,355m), including discontinued operations. Proposed dividend of SEK6.80 (SEK6.30) per share, paid in two instalments. Mats Rahmström was appointed new President and CEO of Atlas Copco AB, effective 27 April 2017. Proposal for the AGM 2018 to split the group into two parts, one industrial and one mining/civil engineering. Divestment of the Road Construction Equipment division. The overall demand for the group is expected to remain at the current level.
Strong Q3 16 orders in main divisions is encouraging
24 Oct 16
Main facts of the Q3 16 release Orders received were SEK26,696m, corresponding to an organic growth of 7% yoy, the main positive of this report. Revenues were SEK26,528m, unchanged organically. The adjusted operating profit margin reached 19.6% (versus 20.4% in Q3 15), and was negatively affected by dilutions from acquisitions and adverse currency movements. The net profit for the period was SEK3,391m (versus SEK3,806m in Q3 15) and corresponding to an EPS of SEK2.78 versus SEK3.12 last year (-11%). The operating cash flow was strong at SEK4,958m (versus SEK4,621m in Q3 15). Overall demand for the group is expected to remain at the current level.
Robust margins amid not so bad mining
19 Jul 16
Atlas Copco reported its Q2 16 results. Main facts: > orders decreased by 3% to SEK25,934m (versus SEK26,775m in Q2 15), corresponding to a 1% organic decline, including +1% in Compressors, +4% in Industrial Technique, -10% in Mining & Excavation Technique and -9% in Construction Technique. > revenue was unchanged organically at SEK25m438m (versus SEK26,111m in Q2 15). > The adj. operating profit reached 19.0% (versus 19.8% in Q2 15) as Mining’s and Industrial’s profitability both declined by 130bp. > The operating cash flow reached the satisfactory level of SEK3,487m, unchanged from last year (SEK3,481m). > The company expects the overall demand to remain at the current level.
Margin slightly disappointing as Mining weighs
27 Apr 16
Main facts: Atlas Copco reported new orders at MSEK 24721 in Q116, unchanged organically, and negatively impacted by weak mining activity. The company reported growth in services in all business areas, except in Mining and Rock Excavation, while order intake for equipment was slightly lower. Revenue decreased by 3% organically to MSEK 23137 (vs SEK24745m) while the adjusted operating margin reached 18% vs 19.3% in Q115, also negatively impacted by Mining. The Q116 EPS was SEK 2.39 (vs 2.66 last year) and the operating cash flow was MSEK 3127 (vs3498m). The company expects the overall demand for the group to remain at current levels.
Weak equipment orders weigh on visibility
29 Jan 16
Q415 results. Orders decreased by 2% compared to last year (5% organic decrease) to MSEK 23.847, with robust service business in all business areas and a lower order intake for equipment, except for industrial tools and assembly solutions. Sales increased by 1% to MSEK 25.582 compared to last year’s MSEK 25.360 (organic decline of 2%). Adjusted operating profit rose to MSEK 4.919 versus MSEK 4.886 last year, corresponding to a 19.2% operating margin (19.3% last year).
Strong execution on margins despite weak O&G/Mining demand
20 Oct 15
Atlas Copco reported Q3 orders that reached SEK24,149m (+3% versus Q3 14), including a positive fx contribution of +7% and a +1% perimeter change. Europe was the region with the highest order increase at +7% in local currencies, while markets such as China and Brazil were weak. Globally, orders declined 5% organically while revenues were flat at SEK25,723m and the adj. operating profit was SEK5,239m (SEK4,604m), corresponding to a margin of 20.4% of sales (versus 19.5% last year). This led to a yoy 32% increase in reported profit, and a strong cash-flow generation of SEK4,621m (versus SEK4,075m in Q3 14).
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
Panmure Morning Note 29-03-2017
29 Mar 17
We are cutting our recommendation to HOLD as we see little upside from current levels given the lack of positive surprises in today’s trading update. Multiples of 4.4x 2017 sales and 17x 2017 EBITDA imply an expectation of at least slightly exceeding expectations. We had assumed that acquisitions will provide the momentum until organic investments deliver. However, acquisitions are proving elusive and excess cash is diluting returns. Moreover, our forecast relies on at least one order in vehicle simulator market, which has yet to be announced. The management has shown that it can use the financial markets to raise equity but it now needs to show that it can deploy excess equity productively.
N+1 Singer - Severfield - Strong H2 drives upgrades; CEO temporarily steps down due to ill health
28 Mar 17
Severfield’s trading update highlights that trading during H2 was strong and the Group now expects results to be ahead of expectations. Cash flow performance has been similarly strong with net funds at the year end also expected to be ahead of expectations. The strong performance was driven by both a better than expected revenue performance and better than expected growth in the operating margin. We expect to increase our FY16 PBT forecasts by c.9% to around £19.5m. In addition, we are disappointed to see that Ian Lawson (CEO) has taken a temporary leave of absence due to physical ill health. John Dodds (non-executive Chairman) will step up to Executive Chairman on an interim basis and Alan Dunsmore (FD) has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Sevefield remains positive and the Group has reiterated its medium term target to double PBT from £13.2m in FY16 by FY20. We remain positive on Severfield (one of our best ideas for 2017) and continue to see clear potential for it to outperform its medium term targets.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)