Strong order intake reported by Sandvik in third quarter results
November 16, 2011
Sandvik AB has reported a strong order intake and sales during the third quarter 2011. At fixed exchange rates, order intake and invoiced sales rose by just over 20%, amounting to 24.8 billion SEK and 23.5 billion SEK, respectively during the quarter.
Adjusted for impairment of goodwill and other one-off costs totalling approximately 1.7 billion SEK, operating profit amounted to about 3.4 billion SEK, or 14% of invoiced sales. The reported operating profit was 1.7 billion SEK, or 7.1% of invoiced sales. Changed exchange rates had a negative impact of 5% on order intake and invoiced sales respectively.
”With the exception of certain segments, the business climate was positive in the third quarter and favourable development was reported for order intake and invoiced sales,” stated Olof Faxander, Sandvik’s President and CEO.
The company reported that demand for advanced cutting tools remained high, with the strongest development recorded in North America and Europe, while, for example, the automotive industry in China displayed signs of leveling off. Activity in the global mining industry was high and a number of major orders for mining equipment used in surface and underground mining operations were received.
In South America, Sandvik Mining and Construction secured a large order for a material handling system valued at just over 300 MSEK. In Australia, a contract was signed to design and construct a new quarry plant valued at nearly 500 MSEK. The trend in the construction industry remained weak in mainly Europe and China, due to macroeconomic uncertainty and government austerity packages.
“While both Sandvik Mining and Construction and Sandvik Tooling registered high demand, the trend for some of Sandvik Materials Technology’s product groups weakened. The North American market developed positively during the quarter as did South America and Australia, while demand in Europe and Asia levelled off in certain segments,” added Faxander.
Edited by: Paul Whittaker, Editor ipmd.net, [email protected]
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