Swedish industrial group Atlas Copco on Friday upgraded its near-term demand outlook, even as it reported lower orders and revenue for the second quarter.
The company said it now expects customer activity to remain at the current level, an improvement from its previous forecast in April which anticipated activity would weaken somewhat.
The improved guidance came as the maker of compressors and industrial tools reported that second-quarter orders fell 8% to 40.1 billion Swedish kronor, while revenue also declined 8% to 41.2 billion kronor compared to the same period last year.
Operating profit for the quarter was 8.5 billion kronor, down from 9.5 billion kronor a year earlier, with the operating margin narrowing to 20.6% from 21.1%.
The company cited mixed demand and currency headwinds for the weaker results.
“While the outlook for the global economy continues to be uncertain, Atlas Copco Group expects that the customer activity will remain at the current level,” the company stated in its report.
The results follow a period of acquisitive activity for the company, which has recently announced several deals to expand its compressor and semiconductor-related businesses.
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