Sandvik releases interim report for third quarter 2021
October 25, 2021
Sandvik AB, headquartered in Stockholm, Sweden, has released its interim report for the third quarter of 2021. Revenues increased organically by 13%, while adjusted operating profit was reported at SEK 3,817 (Q3 2020: 2,626). Order intake saw organic growth of 21% to SEK 26,292 million.
Sandvik Materials Technology
Sandvik Materials Technology saw increased order intake (29%) and a 1% increase in revenue. Strong order intake development was noted in all major regions compared against the corresponding period in the preceding year, with the strongest development seen in North America. Sentiment in oil & gas and aerospace segments continued to improve, with an increase in the number of orders being placed, though levels still remain low.
The Sandvik Board of Directors confirmed its previous decision to proceed with the preparation to distribute SMT to Sandvik’s shareholders and list the company’s shares on the Nasdaq Stockholm Exchange. After the quarter, the acquisition of the medical wire forming company Accuratech Group was completed, a strategic step in its ambition to grow in the medical sector.
Sandvik Manufacturing and Machining Solutions
Sandvik Manufacturing and Machining Solutions saw order intake (+16%) and revenues (+18%) increase year on year, driven by automotive and engineering. Regional order intake growth was seen at 16% in Europe, 19% in Asia and 13% in North America, although lower production volumes in the automotive sector due to semi-conductor shortages were noted.
Sandvik Machining Solutions acquired a majority stake in the solid round tools company Chuzhou Yongpu. Sandvik Manufacturing Solutions increased the pace of its M&A activities, resulting in three strategically important acquisitions in and after the quarter; consequently, SMF’s 2025 target was updated to SEK 6 billion from previously SEK 4 billion
Sandvik Mining and Rock Technology
Sandvik Mining and Rock Technology reported order intake and revenues increases of 26% and 12%, respectively. There has been a reported all-time high order intake in aftermarket, with organic order growth of 38%, and strong equipment growth of 13% year on year. Broad-based underlying demand in both infrastructure and mining with order intake growth of 68% in North America; 19%, Europe; and 10%, Asia.
During the quarter, SRP expanded its offering within crushing and screening with the launch of the track-mobile impact crusher QI353. Based on a new modular platform it can operate in both primary or secondary crushing applications, providing a sustainable solution at reportedly lower operational costs.
“Sandvik has become a more growth-oriented company,” stated Stefan Widing, president and CEO. “We deliver on strong organic growth and have already added over SEK 8 billion in annual revenues from strategic acquisitions. At the same time, we have taken important steps to become a more digitally focused company. With our leading positions, Sandvik has a strong and obvious role in supporting our customers’ digital transformation; a shift that will improve productivity, and lead to significant sustainability gains.”
He concluded, “As a growth-focused, resilient and high-performing company, and with an underlying demand for our solutions, Sandvik is well-positioned to execute on profitable growth, and to deliver long-term shareholder value.”