Atlas Copco AB (OTC:ATLKY) Q4 2022 Earnings Call Transcript

So this is what we continue to do with but we are not hesitating to increase prices.

Operator: The next question comes from Anders Roslund from Pareto Securities.

Anders Roslund: I just have 1 question regarding the FX impact. You mentioned the revaluation of working capital during the quarter. Is that a one-off item? Or was it simply that the effect was positive in the third quarter and more normalized in the fourth quarter? Or — could you help us interpret the revaluation effect?

Peter Kinnart: Yes. I think if you compare the bridge for the different quarters, let’s say, the third quarter and the fourth quarter to be precise. And you calculate the impact on the margin of the currency effect between those 2 quarters, then I think you will get to a difference of approximately minus 1.6%. I think we had a positive impact on the margin in Q3 of 1.9%. And in Q4, only 0.3%. And basically, you can say that the entire difference between those 2 quarters is actually related to the revaluation of receivables and trade payables. And that is, of course, has to do with the fact that if we look at our currency basket, we were at an absolute summit when it comes to the weak Swedish krona versus very strong dollar and other currencies in the world.

That has changed quite dramatically over the fourth quarter and that has resulted in a revaluation of our balance sheet position at the period end rate of December versus period end September and that was quite a substantial impact. Is this a one-time item or is this something that will recur in the future? Well, that depends very much on the exact currency development. If the dollar remains on the current and the Swedish krona remain on the current levels, then basically there is 0 impact on revaluations but should the dollar weaken further and the Swedish krona strengthen, then it is possible that — or it is normal that we would have new revaluation impacts. Then the question is, of course, how big that will be and that will depend very much on the exact exchange rate that unfortunately, I can’t predict yet.

Mats Rahmström: We wish.

Peter Kinnart: With that, we have come to the end of our quarterly earnings call. We thank you all for your participation and for the very good questions. And we hope that we’ve been able to give you a good answer to some of those questions you have had. With that, I hand back to the operator.