Atlas Copco: scheduled split

The Swedish manufacturer Atlas Copco reports an increasing financial year of 2016 in spite of the sale of its Road Materials Division (Dynapac) to the Fayat group. The group consolidates its accounts before a probable split in 2018.

The information is now official: the Fayat group will inherit Dynapac, Atlas Copco’s Road Equipment division. Its sale is expected to have no impact on the results of the Swedish manufacturer, which posted annual net profit up 2% to 11.9 billion kronor (1.26 billion euros). Sales were also solid (+ 2%) at 101.4 billion kronor (10.7 billion euros) and orders in the 4th quarter of 2016 were up by 7%.

The builder’s financial health is important at a time when it plans to have its shareholders vote in 2018 to split into two separate groups. In a statement, Atlas Copco disclosed its intention to keep compression and aspiration, generators, and other specialized tools for the industry and equipment rental. A group that will employ 33,000 people.

In parallel, Atlas plans to introduce its mining and construction divisions on the stock market. "Both activities have different dynamics and characteristics for their demand, " says Group Managing Director Ronnie Leten. The company created for this purpose, baptized temporarily NewCo, will include drilling and construction equipment. It will have 12,000 employees. If the competent authorities give the go-ahead, the IPO (Initial Public offering) in Stockholm is scheduled for spring 2018.