Swedish industrial tools and equipment manufacturer Atlas Copco has released its third quarter (Q3) 2019 results today with CEO and President Mats Rahmström highlighting “solid profitability”.

Order volumes for large compressors increased, supported by new product introductions and increased market penetration.

For vacuum equipment to the semiconductor and flat panel industry, orders increased significantly, mainly driven by customers’ investments in new production technologies.

Order intake from the motor vehicle industry continued to decrease and the demand from other manufacturing industry also weakened.

The service business continued to grow in all business areas.

“Order intake remained on a high level despite continuous uncertainties in the global economy,” Rahmström said.

“We have seen lower activity levels in some parts of the market. Still our profitability is solid and we are resilient thanks to our innovation capabilities, agility and well diversified business and geographical presence.”

Orders received in the third quarter grew to SEK 27.1bn ($2.81bn) an organic growth of 6%. Revenues were SEK 26.7bn ($2.77bn) up 4% organically. Excluding items affecting comparability, the adjusted operating profit increased 11% to SEK 5.9bn ($612.3m), corresponding to a margin of 22%. The return on capital employed remained strong at 32%.

“We focus on developing leading products and service solutions that ensure that our customers get the most out of their investments, increasing productivity and uptime,” said Rahmström.

“Being a decentralised group, we empower our people to take decisions based on their competence and knowledge of the market. That combined with a strong local presence creates lasting value for our customers.”

Looking ahead, in the near-term, the demand for Atlas Copco’s products and services is expected to be somewhat lower than the level in the third quarter.