Atlas Copco profit down in Q1

Revenue in the first quarter was down 3% to SEK16.5 billion ($A2.8 billion), a result that was cushioned by positive currency effects.“Our profitability is still very good bearing in mind the sharp fall in sales, the high costs for redundancy measures and under-absorption in most of our business units,” Atlas Copco chief executive officer Gunnar Brock said.He said that since October 2008, Atlas Copco’s efforts to adapt to the economic conditions had seen 3800 people leave the company, with a further 1200 likely to be laid off in coming quarters. Brock said the staff reductions would result in an annual cost saving of more than SEK2 billion, adding that while sales of equipment were down considerably, the company’s aftermarket business was holding up well.

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