Atlas Copco - Annual Report 1999

The Board of Directors’
Report on 1999 Operations
SEK m. unless otherwise indicated
The Atlas Copco Group’s revenues for 1999 increased
7 percent, to SEK 36,234 m. (33,740). Markets outside
Sweden accounted for 97 percent of revenues. Orders
received increased 11 percent, to SEK 36,534 m. (32,979).
For comparable units, revenues were down 2 percent,
while orders received increased 1 percent.
Revenues
SEK m.
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
I II III IV I II III IV I II III IV
97 98 99
12-month figures 3-month figures
Profit after Financial Items
SEK m.
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
THE BOARD OF DIRECTORS’ REPORT
ATLAS COPCO GROUP
The Atlas Copco Group’s profit after financial items was SEK 3,412 m. (3,637). The profit margin was 9.4 percent (10.8).
Dividend The Board of Directors proposes a dividend of SEK 4.75 (4.32) per share.
Market outlook The healthy level of demand in North America is expected to remain at its present level. The equipment
rental industry is foreseen to continue growing at a faster pace than the economy in general. The rise in interest rates
may negatively affect demand from some industry sectors. Overall, demand in Europe is expected to increase, as higher
production output will eventually trigger investment in capacity expansion. The recovery in the Asian region is foreseen
to continue, leading to improved demand from most industry sectors.
1999 1998 Change, %
Revenues 36,234 33,740 +7
Operating profit 4,470 4,345 +3
– as a percentage of revenues 12.3 12.9
Profit after financial items 3,412 3,637 –6
– as a percentage of revenues 9.4 10.8
Earnings per share*, SEK 11.50 11.96 –4
* Adjusted for the effects of the
equity rights issue
I II III IV I II III IV I II III IV
97 98 99
12-month figures 3-month figures
ATLAS COPCO 1999 3