Business dips for Sandvik Construction

Sandvik Construction’s sales for the fourth quarter of the year were down -7% to SEK 2.17 billion (US$ 332 million). The division recorded an operating loss of SEK 223 million (US$ 34 million) for the three months, compared to SEK 83 million (US$ 13 million ) profits for the same period last year.

For the year as a whole, Sandvik Construction saw its sales fall by -11.2% to SEK 8.6 billion (US$ 1.32 billion), compared to SEK 9.68 billion (US$ 1.48 billion) in 2012. The division’s operating profit for the year was SEK 110 million (US$ 17 million), compared to SEK 748 million (US$ 114 million) in 2012, and the order intake was down -6.5% to SEK 8.51 billion (US$ 1.3 billion).

“Overall demand for Sandvik Construction fluctuated significantly in 2013,” said the company in a statement. “The negative demand trend noted in the third quarter was reversed in the fourth quarter with visible signs of improvement.”

The company added that the operating loss it saw in the further quarter of the year was due to under-absorption of fixed costs as well as some one-off charges.

The improvement it experienced in the fourth quarter of the year was due to increased sales in Europe, North America and Asia, which accounted for 77% of its revenues in the three-month period. Revenues were down in Africa & the Middle East, Australia and South America, although it saw an up-tick in orders from South America.

Sandvik as a whole saw revenues fall -8% in the fourth quarter to SEK 21.8 billion (US$ 3.33 billion) and -7% to SEK 87.3 billion (US$ 13.4 billion) over the course of 2013. Net profit for the year was SEK 5.01 billion (US$ 766 million), a -38% drop on 2012’s figure of SEK 8.11 billion (US$ 1.24 billion).