Improved business climate helps Sandvik increase sales
Sandvik AB, the Sweden-based high technology engineering group with over 47,000 employees worldwide, reported that its full year 2010 order intake was impacted positively by the improvement in the global economy. Orders amounted to SEK 93,285m ( 10,392m), up 31% over 2009, and invoiced sales amounted to SEK 82,654m ( 9,208m) in 2010, a 15% increase over 2009.
The company also reported that higher volumes, greater cost efficiency and a favourable product mix provided for the SEK 11,029m ( 1,229m) profit or 13.3% of invoicing. However, the increased sales are still below the peak achieved a few years earlier.
Selection of cemented carbide tools produced by
Sandvik Tooling
All three of Sandvik s primary areas of activity, Sandvik Tooling, Sandvik Mining and Construction, and Sandvik Materials Technology reported strong 4th quarters in 2010. Sandvik Tooling, which includes carbide producers Sandvik Coromant and Sandvik Hard Materials, reported improved order intake and invoiced sales, increasing by 29% and 34% respectively in the 4th quarter. Full year sales for Sandvik Tooling increased by 30% to SEK 23,893m ( 2,663m).
Sandvik Tooling made a number of acquisitions in recent years including tungsten and tungsten carbide powder producer Wolfram Bergbau und H tten GmbH in Austria in 2009, and Diamond Innovations Inc, formerly the Superabrasives Div of General Electric and a world leaderin the production of synthetic diamond and cubic boron nitride products in 2007.
Sandvik Materials Technology, which includes HIPed PM billet operations at Surahammar and high-alloy powder production in Wales, UK, reported a sales increase of 18% in 2010 to SEK 17,703m ( 1,972m). SandvikAB also has a 61% shareholding in Seco Tools AB a leader in cemented carbide tools which reported sales of SEK 5,838m ( 651m) in 2010.
Sandvik s resigning President and CEO Lars Pettersonj stated that although the increase in demand was stable in most markets, it was strongest in the mining and energy sectors. Olof Faxander was appointed CEO of SandvikAB to replace Mr Petterson in February 2011.
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