More growth for Sandvik Mining and Construction
By Chris Sleight21 July 2008
Sandvik Mining and Construction saw its sales rise +13% in the first half of the year to SEK 18,1 billion (€ 1,92 billion), compared to the first six months of 2007. Operating profits were up +8% to SEK 2,56 billion (€ 270 million).
According to a company statement, the main driver of its growth was the mining segment, with construction making a smaller contribution. However, Sandvik did see a rise in construction activity in the developing markets.
"Demand in the construction industry was stable in Europe but slightly negative in the US compared to the previous year. In Africa and Asia, demand remained very high and order intake adjusted for major projects increased by +48% and +21% respectively," it said.
Over the first six months of the year, the division's order intake was up +7% - just behind its growth in sales and profits. In the second quarter of the year, the order intake was level with the second quarter of 2007 at SEK 10,2 billion (€ 1,08 billion). Again, Sandvik said growth in its order position was much stronger in mining than construction.
Overall, the Sandvik group saw a +8,5% increase in sales over the first half of the year to SEK 46,0 billion (€ 4,87 billion). However, it's operating profit fell -8,7% to SEK 6,97 billion (€ 738 million). The company said this fall in profits was due to exchange rates and falling metal prices.