By Marie Mannes
STOCKHOLM (Reuters) - Swedish industrials group Atlas Copco reported on Wednesday a first-quarter order intake and profit above expectations and predicted demand would remain at the current level in the near term.
Shares in the maker of industrial products ranging from air treatment systems to construction equipment and power tools were up nearly 6% after the report.
"The overall demand for the Atlas Copco Group's equipment and services was solid, although the order intake didn't reach the high level of the comparison quarter in the previous year," the company said in a statement.
Order intake excluding acquisitions fell 4% to 45.7 billion crowns but beat the 41.6 billion expected by analysts in a quarter that is usually seasonally strong.
The company delivered a very strong first quarter, with the highlight being the order intake beat, JP Morgan analysts wrote in a note.
"We expect consensus upgrades given the order run-rate and solid execution on the income statement," they said.
Order intake for the vacuum business, which counts major semiconductor producers among its customers, fell 4% but still beat expectations. JP Morgan analysts noted that the important semiconductor orders increased within the division.
The vacuum business, which competes with the likes of Pfeiffer Vacuum, is an important indicator for Atlas as it typically offers a forward-looking gauge of demand for the broader group.
The division has struggled for the past year as customers have scaled back on investment, dragging Atlas down with it.
However, analysts have for some months been hopeful of a semiconductor recovery, which should continue to help lift Atlas' results.
Operating profit excluding items affecting comparability rose to 9.49 billion crowns ($874 million) from 8.66 billion a year earlier, topping a mean forecast of 9.29 billion in an LSEG poll of analysts.
($1 = 10.8557 Swedish crowns)