Atlas Copco Group CEO and President Mats Rahmström says the manufacturer of industrial tools and equipment experienced “solid profitability, weaker demand” after releasing its Q3 results.

Compared to the previous year, orders received during the third quarter increased 6% to MSEK 23 440 (22 062), an organic decline of 1%. Revenues increased 13% to MSEK 23 675 (21 033), $2,598.68, an organic growth of 6%. The operating profit increased to MSEK 5 263 (5 002), $583.80. Excluding items affecting comparability, the adjusted operating profit margin was 22.5% (22.2).

In the near term, the Sweden-based company expects customer demand to be somewhat lower, mainly due to the semiconductor and automotive industries.

“Our profitability is solid and we continued to grow the service business in all our business areas, but compared to recent high levels the demand weakened in some customer segments,” said Rahmström.

“There are more uncertainties in the global economy and that has affected some customers’ investment decisions.”

“As expected, the semiconductor business had a negative order development in the quarter.”

Atlas provides customers with innovative compressors, vacuum solutions and air treatment systems, construction equipment, power tools and assembly systems.

Examples of innovative products that were launched in the quarter are a high-efficient and energy saving oil-injected screw compressor, and a range of generators that reduce emissions and ensure low energy consumption. A new controller for assembly applications to support Industry 4.0 and fast tool rebalancing was also introduced.

“In the quarter, we announced the acquisition of the cryogenics business of Brooks Automation,” said Rahmström.

“Finding and acquiring companies that bring additional innovation power and strengthen our existing business is an important part of our strategy for growth.”

Earlier this month, Atlas Copco announced it had agreed to acquire the cryogenic segment of Brooks Automation, Inc. The acquisition includes cryo pump operations located in Chelmsford, USA and Monterrey, Mexico, a worldwide network of sales and service centres, and Brooks Automation’s 50% share of Ulvac Cryogenics, Inc., (UCI).

The acquisition is an all-cash transaction utilising Atlas Copco’s existing funds and is subject to regulatory approvals. The acquisition is expected to be completed during the first quarter of 2019.