Sandvik reports a solid start to the year

Commenting on the group’s first quarter 2021 results president and CEO Stefan Widing said: “We had a solid start to the year, and the first quarter was characterised by continued improvement, and positive momentum. Organic order intake for the Group grew by a strong +12% year on year, with record-high order levels in our mining businesses and a continued positive trajectory for our short-cycle businesses. The gradual uptick in demand for Sandvik’s solutions was broad based, with the exception of the aerospace and energy segments that remained subdued, but with the latter showing signs of improved customer activity.

“Group organic revenues increased by +1% year on year and, despite the negative impact from currency, adjusted operating profit improved year on year. We delivered a significantly stronger adjusted operating margin of 19.2% (15.8), driven by continued operational efficiency improvements and lower spend. During the quarter, we generated a total of Skr550m in long-term and temporary savings compared with the previous year.

“We continued to see strong momentum in mining with accelerating demand for our equipment, parts and services. The order intake level for Sandvik Mining and Rock Solutions was at an all-time high, driven by organic growth of +36% year on year.

“This marks the first time that Sandvik Rock Processing Solutions is being reported as a separate business area. Sandvik Rock Processing Solutions delivered a strong organic order intake and revenue growth of +28% and +19%, respectively, driven by strong underlying demand both in the mining and construction segments.

“Demand in Sandvik Manufacturing and Machining Solutions has continued to improve across all our major markets and organic order intake was on par with the preceding year.

More in StainlessSteelFocus May 2021

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