Sandvik reported an adjusted operating profit of SEK 5.4 billion for the third quarter of the year. This was lower than the profit of SEK 5.8 billion a year earlier and what stock market analysts had expected, SEK 5.6 billion. The stock also fell three percent on the Stockholm Stock Exchange as a result.
The business cycle and thus the demand for Sandvik's products from the more traditional industry, including car manufacturers, was weaker than expected.
Stable but mixed
We think we have a fairly stable order intake and revenue in the quarter. But it's a mixed picture. You could say that the industrial business cycle has been somewhat weaker than we perhaps had thought, says Stefan Widing.
However, this should not require any major changes in production.
Generally, we have made adjustments continuously over the past year and we have adapted quite well to the levels we see, he says.
On the other hand, things are going strong in the mining industry, where Sandvik has many customers.
Metal prices are high, which means that customers want to produce as much as they can to take advantage of these high prices. Then they need a lot of spare parts, says Widing.
No comments
In August, Dagens Industri wrote about plans in the ownership, based on sources, that Finnish Metso would/should be merged with Sandvik's mining business – that it would be a good deal for Sandvik's owners who have seen the stock stagnate on the stock exchange.
We noted the speculation, but it was related to Metso's owners. I have no further comments on the speculation.
Is there nothing you are counting on or looking at in an early stage?
As said. No further comments.
Sandvik's interim report for the third quarter:
The adjusted operating profit fell to SEK 5.4 billion, from SEK 5.8 billion the same period last year.
The order intake amounted to SEK 28.8 billion, slightly lower than last year.
Revenue decreased to SEK 30.3 billion. This can be compared to last year's figures of SEK 31.5 billion.
Source: Sandvik
