Sandvik reports record twelve months
January 22, 2020
Sandvik AB, headquartered in Stockholm, Sweden, has reported its results for its full-year 2019. The company stated that 2019 had been a record twelve months for order intake, revenues, adjusted operating profit, adjusted operating margin and cash flow.
Order intake for Sandvik’s products was reported to have improved by 1% in North America while it declined by -8% in Europe and -3% Asia. Changed exchange rates had a positive impact of 4% on both order intake and revenues. Sandvik’s order intake amounted to SEK 104,075 million, and revenues were SEK 103,238 million, implying a book-to-bill ratio of 101%.
Adjusted operating profit increased by 3% year-on-year to SEK 19,219 million, positively impacted in the amount of SEK 1,847 million due to changed exchange rates. The adjusted operating margin remained stable at 18.6%. The reported operating profit decreased by -28% to SEK 13,386 million and operating margin was 13.0%. Changed metal prices had a positive impact of SEK 274 million.
During the year seven acquisitions were closed: Sandvik Machining Solutions acquired three round tools companies (Wetmore, OSK and Melin Tooling Company). Sandvik Mining and Rock Technology acquired a battery technology company (Artisan) as well as a supplier of leading technology in wireless connectivity to monitor and provide insights on underground operations (Newtrax). Sandvik Materials Technology acquired a manufacturer of high-temperature furnace systems and metallic heating elements (Thermaltek). In addition, Sandvik Machining Solutions acquired a minority stake of 30% in Italian company Beam IT, a leading Additive Manufacturing service provider.
Progress was made regarding the internal separation of Sandvik Materials Technology. The intention is to increase Sandvik Materials Technology’s structural independence from the Sandvik Group, thereby putting greater focus on the business’ future development possibilities and creating flexibility. The Board of Directors has also decided to explore the possibility of a separate listing (‘Lex Asea’) on the Nasdaq Stockholm Exchange, should this be considered to strengthen Sandvik Materials Technology’s position and future development.
