Continued tough for Sandvik – Västerbotten Courier

Economy. Sandvik selling the loss-making mining operations Mining Systems, with 1100 employees. At the same time recognizes the engineering group a higher profit than expected.

Facts

– This was in line with the expectations we have. The market remains tough, says CEO Bjorn Rosengren on a conference call.

The profit for the second quarter of 2016 was 2287 for continuing operations, compared with profit of 2.452 billion kronor in the same period last year. Analysts had, according to Reuters, on average, expected a profit of 2.107 billion crowns.

But it has not yet turned. Both sales and orders continue downward, albeit at a slower pace.

– We have a negative organic growth of four percent, says Rosengren.

But profitability, profit in relation to sales, was intact, primarily as a result of savings made.

Both the gas and oil industries as mining industry has remained heavy. And now sells Sandvik Mining Systems unit to loss of SEK 800 million. The buyer is the venture capital firm Cobe Capital. Mining Systems had last year, 1100 employees and sales of SEK five billion, which represented 6 percent of total Group sales.