Sandvik AB has announced positive results for the first quarter 2012, with the group posting the highest recorded order intake in its 150 year history.
Sandvik’s President and CEO, Olof Faxander, stated in the company’s interim report, “The global market situation remained favourable and demand was high for the greater part of Sandvik’s products and services in the first quarter. Order intake displayed very robust development and reached the highest-ever level for the Group at 28.9 billion SEK, corresponding to an increase of 13% at fixed exchange rates. Invoiced sales rose 10% to 24.8 billion SEK. Although the market scenario was largely stable in Europe and strong in North and South America, it was a mixed picture in Asia, where development in China in particular fluctuated significantly among the various segments”.
“The mining industry remained strong and major orders were booked in South America, Australia, Asia and Europe. Demand remained high for products primarily from Sandvik Mining and Sandvik Machining Solutions. For Sandvik Materials Technology, the demand picture was mixed and while high demand was noted in the energy segment, several other segments continued to weaken. Operating profit also developed positively and amounted to 3.8 billion SEK.”
“The new organization is now implemented and we have started to see effects of the first steps of our new strategic direction. We have been able to leverage on a continued positive market climate and achieve both a record-high order intake and high invoicing level. Still, we have improvement potential in Net Working Capital as well as cash flow. We must not forget that this is the beginning of a journey of improvement, which will take time and include both successes and setbacks, but we are on the right track,” continued Faxander.
During the quarter Sandvik acquired shares in Seco Tools from the minority owners, which means that Sandvik’s share of ownership increased from 60% to more than 99%. Sandvik has decided to do a compulsory acquisition procedure of the remaining shares. Seco Tools, which is one of the world’s largest producers of carbide-based metal-cutting tools, is thereby included as part of Sandvik Machining Solutions together with Sandvik Coromant, Walter and Safety.
“This transaction strengthens Sandvik Machining Solutions’ position as the world’s leading supplier of cemented-carbide tools. The new strategy and organization generate opportunities to further improve competitiveness and thus boost growth and profitability,” stated the company.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]