Sandvik Construction sees orders slip
31 January 2013
Sandvik Construction had sales of SEK 9.68 billion (US$ 1.52 billion last year) a +1% rise on 2011. However, the company saw a -12% decline in its order intake over the course of the year, with a pronounced -22% dip in the fourth quarter. Operating profit for 2012 was SEK 748 million (US$ 118 million) – a more than ten-fold increase on 2011 figures, which were hit by a one-off charge.
“Demand in Europe weakened further as activity in the southern regions of the continent was particularly low. The sluggish state of the construction market in China was confirmed by the postponement of projects by a number of customers, thereby also affecting Sandvik’s Chinese crusher manufacturer Shanbao. North American customers were hesitant as fiscal uncertainties in the US weighed on sentiment in the fourth quarter,” said the company in a statement.
The company said it cut production in the fourth quarter and also reduced its working capital. However, it said that while this improved cash flow, there was a negative impact on earnings.
Overall, the Sandvik Group, which also makes mining equipment, machine tools and other products, saw revenues rise +5% to SEK 98.5 billion (US$ 15.5 billion). Net profits were up +38% to SEK 8.1 billion (US$ 1.27 billion).