Strong results for Sandvik – Private Businesses

In the second quarter, Sandvik’s order intake amounted to 19.869 billion SEK (21 766), compared with analysts forecast of 19.991 billion kronor.

Sandvik noted a largely stable Europe in the second quarter with a orders decrease of 1 percent, while North America declined significantly by 10 percent. Asia reported a positive growth of 5 percent compared with the same period last year. It is clear from Monday’s quarterly report.

The pattern is reminiscent of the previous report, except for the Asia then reported back. The positive growth in Asia was driven in the second quarter of growth within Sandvik Mining and Sandvik Materials Technology, which received a major order (regarding steam generator tubes for the nuclear power segment).

“Order activity was characterized in general by caution in the second quarter and both orders and revenues decreased 4 percent compared with the same period last year, “writes CEO Björn Rosengren in his president’s statement.

growth in the two largest business areas, Sandvik Machining Solutions and Sandvik Mining, denoted as “relatively stable” and remained at the same level, respectively, decreased by 2 percent.

the underlying customer activity in the mining segment remained generally stable for Sandvik in the quarter. Orders for equipment declined slightly due to a tough comparison to the previous year, while orders for aftermarket remained unchanged.

Sandvik, thanks to its export and import flows to the UK a natural hedge against the pound weakening, and thus no direct currency impact.

How the market generally develops as a result of Britain’s EU vote remains however to see: Britain is Sandvik’s fourth largest market with annual sales of approximately SEK 3.8 billion, eleven factories and eight sales units, as Björn Rosengren told reporters on Monday after the report.

“this is not a direct hit on us,” he said and mentioned that rising costs of imported goods will be returned upon export.

He also mentioned that the market situation in and related to the UK has been tough historically, at least in the last year, and “not expect any improvement in the short term”.

As for the other major geopolitical risk in the near term , unrest in Turkey, Sandvik has a button billion of its sales in the country and 130 employees there.

“Turkey has for quite a long time been a very important market for us and other companies, and we hope and expect that it comprises: we have no ambitions to withdraw from the market, “said Björn Rosengren.