Emerging markets hit Sandvik Q1
By Chris Sleight25 April 2014
Sandvik Construction’s revenues for the first quarter of the year were down -7% on the same period last year to SEK 1.87 billion (US$ 285 million). The division made an operating loss of SEK 11 million (US$ 1.6 million), compared to a SEK 103 million (US$ 15.7 million) profit a year ago.
The division's revenues were down significantly in Africa, Australia, the Middle East and South America over the quarter, and there was a slight decline in Europe.
The company said that in terms of its order intake, market demand decreased in the quarter, but with differences between different regions and products. It noted an improved order intake in some key European markets and a turnaround in North America. However, it said the order book declined in Asia, although the market for Crushers in China was flat.
It said the operating loss was due to a combination of adverse exchange rates and lower sales and production volumes