Atlas Copco Interim report at March 31, 2008

Atlas Copco Interim report at March 31, 2008

(unaudited)

Continued strong sales and profit growth 

· 11% organic order growth; all business areas and regions contributed.

· Revenues reached MSEK 17 122 (13 390), organic growth 18%.

· Operating profit up 28% to MSEK 3 248 (2 541), a margin of 19.0% (19.0) 
-   in spite of negative currency impact of MSEK 380 vs previous year.

· Profit before tax increased 22% to MSEK 3 026 (2 477).

· Profit for the period was MSEK 2 376 (1 826) 
-   whereof continuing operations MSEK 2 192 (1 773).

· Basic and diluted earnings per share were SEK 1.94 (1.49). 

-   Earnings per share from continuing operations were SEK 1.79 (1.45).
·Operating cash flow was MSEK 900 (845). 


                         January - March
MSEK                           2008              2007               %
Orders received              19 505            16 120             +21
Revenues                     17 122            13 390             +28
Operating profit              3 248             2 541             +28
- as a percentage
of revenues                    19.0              19.0                   
Profit before tax             3 026             2 477             +22
- as a percentage
of revenues                    17.7              18.5                   
Profit from
continuing
operations                    2 192             1 773             +24
Profit from
discontinued
operations, net
of tax                          184                53                   
Profit for the
period 1)                     2 376             1 826                   
Basic and diluted
earnings per
share
from continuing
operations, SEK                1.79              1.45              +23
Basic and diluted
earnings per
share, SEK 1)                  1.94              1.49                   

1)Including discontinued operations.


Near-term demand outlook 
The demand for Atlas Copco's products and services from most customer segments
and regions is expected to remain at a high level.   The positive outlook
includes the main part of the construction segment, while certain sectors,
primarily related to housing is expected to remain weak in North America and
parts ofEurope.

Review of the first quarter 

Market development  
In North America, the demand for industrial equipment remained on a high level
in most segments, benefitting primarily compressed air equipment and related
aftermarket products. 

Demand for advanced assembly tools and systems from the motor vehicle industry
increased compared to the levels seen in recent periods. Sales to the mining
industry continued to be strong, boosted by significantly higher activity in the
coal mining segment in the USA . Exploration equipment, consumables and services
were also high in demand, while the demand from parts of the construction
industry, primarily related to housing, was weaker than the previous year. 

The demand development for all types of equipment and most customer segments
continued to be strong throughout South America.

In Europe , most countries continued to see high levels of demand. Eastern
Europe reported very strong growth rates for all types of equipment while growth
in Western Europe was more moderate. Demand for mining equipment, predominantly
in Eastern Europe , continued to increase and demand for compressed air
equipment and industrial tools from manufacturing industries remained healthy.
However, a more cautious attitude from parts of the construction industry
affected the demand for construction equipment negatively in Western Europe . 

Demand in the Africa/Middle East region continued to grow. Construction
equipment sales grew strongly in Middle East and Northern Africa and compressed
air equipment showed a good development in Southern Africa . 

Demand for all types of equipment was good throughout Asia, with particularly
strong increases in India. Growth in China and South East Asia was also very
good, while it remained negative in Japan. In Australia , the demand from the
important mining industry remained strong.

For further information
Atlas Copco AB 
SE-105 23 Stockholm, Sweden
Phone: +46 8 743 8000, Fax: +46 8 643 3718
Internet: www.atlascopco.com
Corp. id. no: 556014-2720 

Analysts 
Ingrid Andersson, Investor Relations Manager, 
Phone: +46 8 743 8290 or +46 70 497 8290   ir@se.atlascopco.com

Media 
Love Liman, Acting Media Relations Manager, Corporate Communications, 
Phone: +46 8 743 8060 or +46 73 231 8060
media@se.atlascopco.com