Sandvik sees profits increase in first nine months 2012

October 29, 2012

Sandvik has reported that order intake for the first nine months of 2012 (January – September) developed positively and amounted to SEK 76,878 million (SEK 75,088 million in 2011), up 2% in total and 1% at fixed exchange rates for comparable units. Invoiced sales were SEK 74,201 million (68,980), up 8% in total and 7% at fixed exchange rates.

The company reported that operating profit for the period amounted to SEK 11,356 million (8,498), an improvement of 34%, or 10% if adjusted for the goodwill impairment charge of SEK 1,160 million that adversely impacted earnings in the preceding year.

Sandvik witnessed the global business climate improve significantly in the earlier parts of 2012, but stated that it started to weaken towards the end of the period. This trend applied to all business areas, but was most pronounced for Sandvik Mining, the company added.

Decline in European market in third quarter

Sandvik stated that its main markets became more cautious during the third quarter 2012 compared with the preceding quarter. Compared with 2011, demand increased in Africa, where the mining industry remained strong due to high gold prices. Business activity in Europe remained low, largely driven by declining demand in the German automotive and general engineering industries. Europe accounted for less than one third of Sandvik’s total order intake and invoicing for the first time in the company’s history.

“Although operating profit was impacted by currency effects, declining metal prices and extended maintenance work, it still totalled SEK 3.3 billion, or 14.2%, in the seasonally weakest quarter of the year. At the same time, working capital was reduced, thereby contributing to the strongest cash flow recorded to date for a single quarter. We remain on the right track”, stated Sandvik’s President and CEO Olof Faxander.

Global demand per customer segment displayed mixed development in this quarter, with the largest downward shift in mining, while the aerospace industry remained strong. Demand improved from a high level in Africa, but weakened in other major markets. Order intake amounted to SEK 21.8 billion, a decline of 10% compared with the preceding year at fixed exchange rates. Invoicing for the quarter increased by 2% at fixed exchange rates for comparable units, and amounted to SEK 23.4 billion. Changed exchange rates impacted both order intake and invoiced sales negatively by 3%.

“Production levels are being adjusted, in response to the market slowdown observed. Furthermore, various scenarios are being evaluated to enable us to adjust costs in accordance with new market conditions. The common objective is to proactively and efficiently manage a potentially weaker business climate, without negatively affecting our long-term growth ambitions,” added Faxander.

www.sandvik.com   

Posted by: Paul Whittaker, Editor ipmd.net, [email protected]mmunications.com   

News | Articles | Market reviews | Search directory | Subscribe to e-newsletter

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Burgess-Norton and Amsted Automotive: How a legacy automotive supplier is growing with, not despite, electrification
  • Meeting sustainability demands in PM: High-temperature sintering of nickel- and copper-free powder mixtures for low alloyed PM parts
  • World PM2022: An overview of the status and trends in the global PM industry
  • A novel approach for the production of metal powders with tailored chemical compositions: Amazemet’s rePowder
  • Productivity, flexibility, reliability: SACMI’s new press technologies for the changing PM industry
  • Understanding the thermal properties of metal powders: Characterisation of powders using the Hot Disk technique
  • World PM2022: Views on the potential of Field Assisted Sintering for advanced materials

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link