Order Intake: SEK28.8 billion, flat year over year.
Revenue: SEK30.3 billion, declined by 4%.
Organic Growth: Orders up 2%, revenues down 1%.
Adjusted EBITDA Margin: 19.4%, decreased by 7%.
Adjusted Profit: SEK3.7 billion.
Cash Flow: SEK6.8 billion, cash conversion rate of 121%.
EBITA: SEK5.9 billion, margin of 19.4%.
Net Financial Debt: SEK46 billion, financial net debt over EBITA at 1.4.
Tax Rate: 24.1% excluding items affecting comparability.
Currency Impact: Negative impact of 5% on orders and 4% on revenues.
Major Order: SEK1.9 billion order from BHP for the Jansen project.
Segment Performance: Mining and Rock Solutions margin at 20.6%, Rock Processing margin at 15.2%, Manufacturing and Machining Solutions margin at 19.8%.
Savings from Restructuring: SEK388 million in total savings.
Release Date: October 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Sandvik AB (SDVKF) reported a strong cash flow of SEK6.8 billion for the quarter, indicating robust financial health.
The company achieved significant savings from restructuring programs, amounting to SEK388 million, which positively impacted the financial results.
Sandvik AB (SDVKF) saw solid momentum in its mining and software businesses, with double-digit growth in the aftermarket segment.
The acquisition of Universal Field Robots is expected to strengthen Sandvik AB (SDVKF)’s mine automation offerings.
Participation in major industry trade shows like MINExpo and IMTS showcased Sandvik AB (SDVKF)’s new innovations, enhancing its market presence.
Total revenues declined by 4% year-over-year, with organic revenue growth being negative at 1%.
The cutting tools segment was negatively impacted by a weak macroeconomic environment, particularly in Europe and China.
The automotive segment experienced significant declines, particularly in Europe, affecting overall performance.
Currency fluctuations had a negative impact on both orders and revenues, reducing the top line by approximately 5%.
There is continued caution on new equipment sales in the mining sector, with customers preferring to prolong the life of existing machines.
Q: Can you discuss how committed Sandvik is to maintaining the A- rating or would you be content with a BBB+ rating? A: Cecilia Felton, CFO, stated that Sandvik aims to maintain a financial net EBITA below 1.5, which is their balance sheet target. They plan to reduce financial net debt to allow room for mid-sized acquisitions, which will be financed through cash flow rather than additional debt.