Sandvik reports record Q3 operating margin
October 23, 2018
Sweden’s Sandvik Group has reported its financial results for the third quarter 2018. The company reported an order intake of SEK 24,192 million for the quarter, an increase of 9% compared to Q3 2017 (SEK 21, 888 million). An adjusted operating margin of 18.9% was said to be a record high for a third quarter.
Adjusted operating profit for Q3 2018 was reported at SEK 4,587 million, an increase of 37% compared to Q3 2018 (SEK 3,338 million). Earnings for the quarter were said to have been positively impacted by a net capital gain of SEK 618 million, generated by the divestment of Sandvik Hyperion. Excluding positive effects from changed exchange rates, structure and metal price effects, the adjusted operating profit improved by 25%.
Order intake and revenues in the third quarter improved organically by 9% and 10% respectively, with a reportedly strong contribution from all three business areas. Sandvik Materials Technology reported an increase in orders of 22%, while orders for Sandvik Mining and Rock Technology increased organically by 8%, and Sandvik Machining Solutions also reported an organic order growth of 8%.
Björn Rosengren, President and CEO of Sandvik Group, stated, “In the third quarter, order intake improved significantly in all three business areas on the back of strong progress in most customer segments and in the three major geographical regions. […] I am also pleased that we made progress on reshaping the business portfolio toward improved long-term sustainable value creation as we closed a number of acquisitions and completed earlier-announced divestments.”