Economy. CEO: TATA Sells Mining Systems at the venture capital firm Cobe Capital. At the same time, Sandvik reports a profit before tax that is slightly higher than expected.
On the stock market, it is thumbs up. Sandvik share goes against the tide, rising by more than 2 percent after the interim report.
The profit for the second quarter of 2016 was 2 287 for the remaining operations. That compares with profit of 2.452 billion kronor corresponding period last year.
Analysts had, according to Reuters, on average, expected a profit of 2.107 billion crowns.
“I ‘ satisfied with the profit developed according to plan in the second quarter and that we managed to maintain a stable operating margin, despite a challenging market environment, “writes Sandvik’s CEO Björn Rosengren in a statement.
turnover fell to 20.321 billion crowns, from 22.2 billion kronor a year earlier, and orders fell to 19.869 billion kronor, from 21.766 billion crowns.
“We noted weak demand in the energy sector among customers in the oil and gas industry. The underlying customer activity in the mining segment remained generally stable. Orders for equipment declined slightly due to a tough comparison to the previous year, while orders for aftermarket remained unchanged, “writes Rosengren.
” The demand in the automotive and aviation segment improved slightly, “he added.
the sale of Mining Systems entails a capital loss for Sandvik of SEK 800 million, which will affect earnings for the third quarter.
Mining Systems had 2015 1100 employees and sales of five billion kronor, equivalent to 6 percent of total Group sales.
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