Sandvik Construction sees flat markets

Sandvik Construction’s invoiced sales for the second quarter of the year were down -11% on the same period last year to SEK 2.28 billion (US$ 264 million). However, the division saw operating profits almost double compared to a year ago, rising to SEK 151 million (US$ 17 million, compared to SEK 51 million (US$ 6 million) a year ago, and the order intake was up +4% to SEK 2.35 billion (US$ 272 million).

Sandvik said the increase in order intake reflected a decline in Europe and Asia which was more than offset by an increase in North America. It added that demand for mobile crushing equipment continued to rise in North America, and that market activity in general was higher in the surface drilling and tunnelling equipment areas.

Despite the improvements in some areas, Sandvik said the market for its construction products remained flat. “Demand remained overall stable at a low level compared with the preceding quarter,” it said in a statement.

The Sandvik Group as a whole recorded invoiced sales of SEK 23.4 billion (US$ 2.71 billion) for the second quarter of the year, a -5% decline on the previous year. However, its net profit was up +12% to SEK 1.72 billion (US$ 199 million).