Sandvik Construction’s revenues for the third quarter of the year fell -15% compared to the same period last year, to SEK 2.04 billion (US$ 239 million). However, there was a turnaround in profitability, with operating profit hitting SEK 99 million (US$ 11.6 million), compared to just SEK 1 million (US$ 117,000) a year ago.
A company statement said the business’s markets were “challenging,” adding, “Overall, the underlying market continued to be relatively stronger in the US. Europe remained largely stable at a low level, while demand remained weak in China, Brazil, Russia and Southeast Asia.”
The company’s order intake in the quarter was SEK 2.18 billion (US$ 256 million). While this was down -6% on the same period last year, the fact that the value of new business won in the quarter was higher than the company’s revenues, albeit by just 7%, was highlighted as a positive by Sandvik.
Overall, Sandvik group’s sales for the quarter were -6% lower than a year ago at SEK 20.9 billion (US$ 2.46 billion) and its net profit was down -16% to SEK 1.25 billion (US$ 148 million).