Atlas Copco - Annual Report 1999

ics for the end-user. Also, in-house development of a DC motor
strengthened the cordless tools range.
Milwaukee sustained its momentum in product development
by introducing several state-of-the-art products. One example is
a broad line of versatile and agile cordless tools using a universal
charger, an orbital-action reciprocating saw, and an ergonomic
and multi-adjustable circular saw, “Tilt-Lok ® ,” all well received
by the market.
The Alliance Tools division, launched several new products
such as a new automotive sander, an impact wrench, an industrial
vibration-dampened riveting hammer and a new pistol
grip screwdriver for the appliance industry and a high power
angle drill for aerospace use. Another important step forward
was the development of a new electronic controller range for
electric tools primarily directed to the motor vehicle industry.
Investments
The business area invested a total of sek 323 m. (338) in property
and machinery, most of which related to expenditure aimed
at flow and quality improvements in the manufacturing units.
Additionally, Milwaukee successfully implemented a new company-wide
enterprise resource planning system for manufacturing,
distribution, and finance. The company also invested in
a new automated assembly line for electric motor components.
Training
Industrial Technique’s pace of innovation and its customers’
ongoing pursuit of automation and consolidation require a
proactive attitude towards training. The process whereby customers
and Atlas Copco share knowledge is critical for driving
the business forward. In this respect, Industrial Technique’s
divisions have developed new training concepts that ensure, in
a systematized way, that front-line staff can serve customers in
the best possible manner and that customers’ knowledge and
inquiries are managed properly. One key attitude is that the
more Industrial Technique’s customers understand about the
products, the more likely they are to choose them.
Structural changes
During 1999, Atlas Copco Electric Tools division consolidated
all production at the facilities in Winnenden, Germany. Also,
the division started a restructuring project for its sales organization,
to improve customer service.
Effective August 31, Atlas Copco Controls, a subdivision of
Atlas Copco Industrial Tools and Equipment, was sold to the
U.S. company Danaher Corporation. In 1998, Atlas Copco
Controls had annual sales of sek 470 m. and 235 employees.
In October, a restructuring plan for the Alliance Tools division
was confirmed by which two of its product lines will be relocated
from the U.S. to Great Britain and India.
Effective November 1, Industrial Tools and Equipment acquired
Tool Technics NV, of Belgium, a service company focusing
on the automotive industry. The company has 32 employees.
Market Outlook
The global demand for industrial machinery and professional
power tools is anticipated to continue growing. Especially
Europe is expected to contribute to this growth. Service and
consumables are important and promising areas for growth.
Johan Halling Richard Grove
Charles Robison Peter Möller
Share of Group
revenues 28%
Revenues
SEK m.
10,500
9,000
7,500
6,000
4,500
3,000
1,500
0
95
96
97
98
99
Earnings and Return
1,200
1,000
800
600
400
200
0
INDUSTRIAL TECHNIQUE
Business Area Executive: Giulio Mazzalupi (acting)
Industrial Technique’s divisions are:
• Atlas Copco Electric Tools,
President Johan Halling
• Milwaukee Electric Tool,
President Richard Grove
• Alliance Tools,
President Charles Robison
• Atlas Copco Industrial Tools and Equipment,
President Peter Möller
SEK m. %
95 96 97 98 99
30
25
20
15
10
Return on capital employed, %
Operating profit SEK m.
ATLAS COPCO 1999 57
5
0
INDUSTRIAL TECHNIQUE