Sandvik AB reports increased sales on back of stable demand
August 8, 2011
Sandvik AB has reported increased sales on the back of stable demand. “The business climate continued to develop favourably during the second quarter. Order intake continued to increase compared with the preceding year as well as the preceding quarter, and higher invoiced sales and production volumes resulted in improved earnings,” stated Sandvik’s President and CEO, Olof Faxander.
The company reported that the market situation remained positive during the second quarter, with order intake and invoiced sales rising 20% and 24% respectively, at fixed exchange rates compared with the second quarter 2010. Order intake increased significantly in all markets for Sandvik Tooling and Sandvik Mining and Construction – both divisions having heavy involvement in hardmetal (cemented carbide) production.
The market scenario was more fragmented for Sandvik Materials Technology (SMT), which includes furnace products, medical devices, HIPed PM products, gas atomised metal powders and spray formed products. SMT’s order intake declined slightly compared with the strong second quarter of 2010.
First half year group sales for 2011 totalled SEK 45,451 billion ($7,115 billion) – an increase of 26% on the same period in 2010. The second quarter contributed sales of SEK 23,421 billion ($3.662 billion) – a total increase of 14%, or of 24% at fixed exchange rates for comparable units compared with the second quarter of the preceding year.
Invoiced sales at fixed exchange rates and for comparable units increased 24% for Sandvik Tooling to SEK 6,840 billion, 30% for Sandvik Mining and Construction to SEK 9,867 billion, and 15% for Sandvik Materials Technology to SEK 4,935 billion. Changed metal prices were said to have had a marginal impact on invoiced sales.
Sandvik also reported that on June 13, two male employees aged 57 and 60 died in a tragic accident at Sandvik Materials Technology in Sandviken, Sweden. The employees had been performing diagnostic work in the basement of one of the furnaces of Meltshop 08 at Sandvik Materials Technology when they were found dead after a search by colleagues. One of the theories about the cause of the accident is that there was a leakage of argon gas.
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