Sandvik’s report for the year first quarter was a real pleasure pill for the stock market. Sandvik was one of the day’s big winners on the Stockholm Stock Exchange and CEO Faxander are satisfied.
– There is a strong performance combined with good cash flow and it shows that we are on the right track with the company, he says to SvD Business, and continues:
– We have had a number of strong quarters in a row, at least three quarters in a row that I’ve been very happy with.
Sandvik’s results were surprisingly strong operating margin of 4.5 percent was better than expected.
– It is a quarter with both earnings growth and a very strong cash flow, actually the strongest cash flow that we have ever delivered in a first quarter, says Sandvik’s CEO.
As in several other export company Sandvik is impacted positively by a weakened crown.
– We have quite a strong positive currency effects, of course, . If you look at our guidance, given the exchange rates prevailing on March, so we would have a positive effect of SEK 900 million in the second quarter of currency explains Faxander.
At the same means of exchange rate movements operations in Sweden are very competitive right now. The second wave of Sandvik’s cost-cutting program is running, but no new notice to Sandviken has not arrived.
– We have made some adjustments in Sandviken as a consequence of weaker growth in oil and gas in the quarter. But it is clear that a weaker exchange strengthens the competitiveness of our Swedish operations.
Is it bad timing that Anders Nyren gets fired the same day as you deliver a strong report?
– I think it’s two separate issues. What is happening is about an owner of Sandvik, admittedly affect the Chairman of the company, but the most important for the company as CEO and management are understood to focus on driving the development we run the company with savings and efficiency programs and to take care if our customers.
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