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Investing.com -- Atlas Copco (ST:ATCOa) shares fell more than 9% on Friday after the company reported a decline in second-quarter orders, revenue and profit, citing negative currency effects and mixed demand across its business areas.
Orders received fell 8% to SEK 40.09 billion from SEK 43.65 billion a year earlier, with an organic decrease of 1%.
Revenues dropped 8% to SEK 41.21 billion from SEK 44.80 billion, including an organic decline of 2%. Currency movements had a negative impact on both figures, while acquisitions contributed positively.
Operating profit declined 10% to SEK 8.49 billion, compared with SEK 9.47 billion last year.
The operating margin narrowed to 20.6% from 21.1%. Adjusted operating profit, excluding items affecting comparability, decreased 14% to SEK 8.41 billion.
Profit before tax fell to SEK 8.41 billion from SEK 9.27 billion. Net profit dropped 15% to SEK 6.53 billion. Basic and diluted earnings per share were SEK 1.34, down from SEK 1.57.
Operating cash flow fell to SEK 6.11 billion from SEK 6.86 billion. Return on capital employed was 26%, compared with 29% last year, and return on equity declined to 27% from 31%.
In the Compressor Technique segment, orders declined 14% to SEK 18.28 billion, and revenue fell 5% to SEK 19.12 billion.
Operating profit dropped 4% to SEK 4.78 billion, with the margin slightly higher at 25.0%, up from 24.8%. Demand for gas and process compressors was significantly lower.
Vacuum Technique reported a 4% drop in orders to SEK 9.01 billion and an 11% decline in revenue to SEK 8.98 billion. Operating profit decreased 16% to SEK 1.70 billion, with the margin down to 18.9% from 20.1%.
In Industrial Technique, orders fell 8% to SEK 6.37 billion and revenue declined 18% to SEK 6.12 billion.
Operating profit dropped 33% to SEK 1.05 billion, with the margin narrowing to 17.1% from 20.8%.
Power Technique recorded a 5% increase in orders to SEK 6.63 billion, but revenue declined 3% to SEK 7.20 billion.
Operating profit decreased 13% to SEK 1.23 billion, with the margin at 17.1%, compared with 19.0% a year earlier.
For the first half of 2025, orders fell 3% to SEK 86.69 billion, and revenue declined 4% to SEK 83.94 billion.
Operating profit dropped 9% to SEK 17.10 billion. Profit before tax was SEK 16.88 billion, down from SEK 18.64 billion, and net profit totaled SEK 13.12 billion, compared with SEK 14.82 billion.
Earnings per share were SEK 2.69, down from SEK 3.04. Atlas Copco stated that customer activity is expected to remain at the current level.