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Sandvik Posts Quarterly Results- 7/23/2010
Sandvik reports a net company profit of SEK 1.9 billion (US $257 million) for the second quarter 2010 fiscal year. This is an improvement over the same period for 2009, in which the company reports a loss of SEK 2 billion. Revenues for the group were up 14 percent year on year, increasing from SEK 18 billion to 20.6 billion ($2.79 billion).
For the second quarter, Sandvik reports an increase in order intake and invoice sales of 43 percent and 15 percent respectively at fixed exchange rates. Demand developed positively for Sandvik Materials Technology during the quarter. Order intake for products to the energy sector and the mining industry remained strong and the improvement continued for products to the automotive, electronics and parts of the consumer industry.
For the company’s Sandvik Materials Technology segment, order intake was up 34 percent, including a positive effect of about 11 percentage points related to changed metal prices. Invoiced sales for the segment increased 23 percent, including a positive effect of about 9 percentage points related to changed metal prices.
“Demand for Sandvik’s products continued to improve in the second quarter,” says Sandvik’s President and CEO Lars Pettersson. “Order intake exceeded invoiced sales by SEK 2.5 billion, resulting in a strengthening of the order books of both Sandvik Mining and Construction and Sandvik Materials Technology. Lower cost levels, combined with higher sales and production volumes, a favorable product mix and positive metal price effects are the main reasons for the improved result.”