By Adria Calatayud
Atlas Copco shares fell after the company reporter first-quarter earnings that came in below analysts' expectations and projected demand would weaken in the near term.
Shares were down 5.2% in European afternoon trade at 146.15 Swedish kronor, taking the stock's year-to-date fall to 14%.
The Swedish industrial tool maker said Tuesday that first-quarter net profit was 6.60 billion Swedish kronor ($689.1 million) compared with 7.17 billion kronor in the year-earlier period.
Revenue was 42.73 billion kronor compared with 42.88 billion kronor. The company's operating profit declined to 8.61 billion kronor from 9.35 billion kronor.
Analysts polled by FactSet had forecast revenue at 43.31 billion kronor and operating profit at 9.39 billion kronor.
Revenue was broadly in line with expectations, but profitability missed expectations across all divisions, which is hard to explain, RBC Capital Markets analyst Sebastian Kuenne wrote in a note to clients. Going forward, the company is likely to face the strongest currency headwinds in at least 15 years, Kuenne added.
Atlas Copco said it expects customer activity to weaken somewhat in the near term.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
April 29, 2025 11:29 ET (15:29 GMT)
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