Atlas Copco has recorded positive market movement, as it sees a jump in year on year orders.
According to the machinery manufacturer it saw a second quarter increase of 11 per cent in orders “supported by an improved demand from the manufacturing industry and acquired businesses,” it said in a company statement.
“It is encouraging to see a positive demand development from the manufacturing industry, and that the order intake for mining equipment has stabilised,” Ronnie Leten, CEO of the Atlas Copco Group, said.
“The margin improved compared to the first quarter, partly thanks to further efficiency measures.”
On top of this it also saw one per cent organic growth.
However it is not as bright for the manufacturer’s mining business, with Leten telling a news conference"when it comes to exploration I haven't seen any movement there. I have not heard anyone talking of ... any signs of life….so that is really bad”.
According to Reuters orders for its mining unit fell three per cent year on year.
Despite this Atlas still remained optimistic as orders for its mining business stabilised, and it forecast demand to rise.
"If you ask me about mining and rock excavation, what I saw before was a bit of a flat development, maybe with a bit of a negative trend. But I would now say it's flat with a bit positive trend," Leten said.
He went on to point to Australia as a region for increased growth and return.
Revenues for the year stood at $3.651 billion, while it recorded an operating profit of $679.5 million, with an operating margin of around 18.6 per cent.