STOCKHOLM (Reuters) - Swedish industrial group Atlas Copco said on Thursday it was reaffirming its outlook for softer demand in the final months of the year as customer activity weakened somewhat from the high level seen in the third quarter.
The maker of compressors, vacuum pumps and industrial tools cautioned investors last month that it expected weaker demand in the near-term after a third quarter where its order intake grew 6% on a like-for-like basis and profits beat market forecasts.
However, a slump in order intake for its Vacuum Technique business, which counts the semiconductor industry among its main customers and accounts for roughly a quarter of group revenues, unnerved investors at the time.
Sweden's biggest company by market value hosted a capital markets day for investors on Thursday and Geert Follens, who leads the business area, said the unit's current order book would take it "a long way into the new year" while cancellations were not material relative to its size.
The company's vacuum gear 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 also for the broader group.
Follens said he expected continued growth from semiconductor producers in China, which account for a huge portion of global output and where restrictions due to COVID-19 outbreaks have dented output this year, with growing stability seen within a quarter.