The world’s air compressors manufacturing giant, Atlas Copco AB has stated that due to rising demand from the manufacturing industry, the demand for air compressors will rise in the forthcoming months. From the industrial perspective, the situation looks quite positive and lucrative.
The mining-equipment unit of Atlas which generates about 26% of the total sales has witnessed high degree of profitability because of the company’s efforts towards decreasing their expenditure. Over the past two years, Atlas has been declining several orders. However, this trend is expected to change in the forthcoming months.
According to a senior official at Atlas Copco the double digit growth being observed this year may be absent in the year 2015. Only, high mining demand can ensure similar kind of growth pattern next year. High demand from mining mainly comes from the Asian economies of India and China. Recovery of the mining industry in these countries can fuel the demand. However, the possibility of such a recovery seems a little bleak as of now.
The stocks of Atlas Copco have risen by about a percent and at the closing it was valued at 197 Kronor. The manufacturer has been valued at 235 billion kronor and the stock has gained by about 10%.
Due to the $1.5 billion acquisition of the UK based vacuum pump manufacturer Edwards Group, Atlas Copco has witnessed a 15% jump from the previous year and the revenue generated has been 23.6 billion kronor, which has been more than expected.