Increased demand for vacuum pumps

Last year, the Group collected more orders in all five divisions and all key regions worldwide than in 2016. Vacuum technology in particular stood out: sales grew by 44% to SEK 19.6 billion (EUR 2 billion). This was partly due to the vacuum specialist Leybold, which was acquired in the second half of 2016 and whose headquarters are located in Cologne. Demand for vacuum pumps increased in all industrial sectors, with a focus on the semiconductor industry, the manufacture of flat panel displays and laboratories. More orders than in the previous year came from Asia and North America in particular.

Compressor Technology can also look back on a strong year with sales growth of 7% to SEK 38.8 billion (EUR 7 billion). Among other things, the market launch of a new turbo compressor for high compressed air requirements provided impetus. Demand for both large and small compressors increased worldwide, particularly in North America.

High demand from the automotive industry

Industrial Technology once again reported good business in 2017. Global sales increased by 9% to SEK 16.4 billion (EUR 1.7 billion). In Industrial Technology, Atlas Copco bundles the business with industrial tools, assembly systems, bonding and dispensing technology as well as self-pierce riveting systems. The division benefited from investments by the automotive industry, particularly in the manufacture of electric cars and vans. The aviation industry also demanded more equipment. Most recently, the geographical focus was on South America, Europe and Asia, while demand from North America hardly changed.

Atlas Copco's sales of equipment for power generation, tunneling and mining recovered significantly in 2017. Tunneling and Mining achieved sales of SEK 29 billion (EUR 3 billion), an increase of 16%, with solid growth in demand in all areas. The recently restructured Power Technique division increased its sales by 12% to SEK 13.2 billion (EUR 1.3 billion). This division offers mobile compressors, power generators, light towers, pumps and hand-held construction tools, compaction and concrete technology.

As announced a year ago, the Group is to be split into two listed companies in 2017: one will continue to be called Atlas Copco and will comprise the existing Compression Technology, Vacuum Technology, Industrial Technology and Energy Technology divisions. The construction and mining technology business is to be bundled in the new Epiroc AB. Shareholders will vote on the split at the Annual General Meeting at the end of April; the share split could then be completed in June. The Group aims to become more attractive to investors through the split. kp