Sandvik AB, Stockholm, Sweden, has published its Annual Report for 2016. The company stated that a number of customer segments were affected by a challenging macro-economic situation in 2016, reporting that order intake across all business areas amounted to SEK 84,233 million, a year on year decrease of 1% at fixed exchange rates for comparable units. Operating profit for 2016 was, however, reported to be SEK 9,657 million, up from SEK 6,062 million in 2015 and corresponding to 11% of revenue, compared with 7% in the previous year.
According to the report, a new strategic direction established in 2016 focused on decentralisation, moving profit and responsibility to product areas and establishing new management teams for many of its businesses. Sandvik stated that it altered its business area structure to focus on core operations. A key aspect of this was the merger of Sandvik Mining and Construction into one business, renamed Sandvik Mining and Technology.
The divestment process of Sandvik’s Mining Systems, Hyperion and Process Systems continued throughout the financial year. In 2017, the company has reported its plans to invest in and pursue new acquisitions in line with its core business areas. Sandvik’s board of directors also reported that it will continue to focus on its core capabilities going forward, such as material and application knowledge.
Following movements in metal prices and successful results in the Materials Technology sector, the year also saw Sandvik initiate work towards its new Additive Manufacturing segment, which began operation in January 2017. This new business is intended to fully commercialise Sandvik’s position in the AM market.
“We are on track to fulfil our ambitious targets by making continuous improvements throughout our business to achieve stability, profitability and growth. Our increased decentralisation and the changes we are now focusing on are the foundation for our capability to deal with anticipated market trends and variations in the business climate. We will continue to be a market leader, secure even better results and market shares, as well as continue to be an attractive company to work for and to own,” stated Sandvik President and CEO Bjӧrn Rosengren.