Atlas Copco - Annual Report 1999
Atlas Copco - Annual Report 1999
Atlas Copco - Annual Report 1999
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<strong>Atlas</strong> <strong>Copco</strong> <strong>1999</strong><br />
Revenues Group revenues increased 7 percent, to SEK 36,234 m. (33,740) mainly<br />
as a result of acquisitions related to the Rental Service Business Area. Overall,<br />
the North American market demand remained strong. In Europe, the demand<br />
was flat, while most Asian countries showed a strong recovery in the latter<br />
part of the year.<br />
Earnings Profit after financial items decreased 6 percent, to SEK 3,412 m.<br />
(3,637), corresponding to a profit margin of 9.4 (10.8) percent. The profit<br />
includes SEK 83 m. resulting from the net effect of the divestment of <strong>Atlas</strong><br />
<strong>Copco</strong> Controls and a non-recurring charge for restructuring the Alliance Tools<br />
division. Net profit after tax amounted to SEK 2,247 m. (2,283). Earnings per<br />
share was SEK 11.50 (11.96), adjusted for the effects of the equity rights issue.<br />
Equity rights issue In October <strong>1999</strong> an equity rights issue provided the Group<br />
with net proceeds of around SEK 4.1 billion.<br />
Proposed Dividend The Board of Directors proposes a dividend of SEK 4.75 (4.32)<br />
per share.<br />
Acquisitions and Divestments In July <strong>1999</strong>, <strong>Atlas</strong> <strong>Copco</strong> acquired the U.S.-based<br />
Rental Service Corporation (RSC) which operates more than 290 equipment<br />
rental yards in North America and serves more than 250,000 customers. RSC<br />
constitutes a new division in the Rental Service business area.<br />
During the year, Compressor Technique acquired two compressor rental<br />
companies, ABIRD BV, based in the Netherlands, and Rand-Air Ltd., in South<br />
Africa. In October, Industrial Technique acquired Tool Technics NV, a Belgian<br />
service company that focuses on the automotive industry.<br />
During the year Industrial Technique divested <strong>Atlas</strong> <strong>Copco</strong> Controls, the<br />
motion control products manufacturer, to Danaher Corporation, in the U.S.<br />
Market Outlook Overall, demand is foreseen to be better in year 2000 than in <strong>1999</strong>.<br />
The North American economy is expected to remain strong. Europe is foreseen to<br />
improve and the Asian recovery to continue.<br />
Revenues and<br />
Earnings per Share<br />
SEK m. SEK<br />
40,000<br />
15<br />
32,000<br />
24,000<br />
16,000<br />
8,000<br />
0<br />
95 96 97 98 99<br />
Revenues<br />
Earnings per share<br />
12<br />
9<br />
6<br />
3<br />
0<br />
ATLAS COPCO <strong>1999</strong> 1
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