Sandvik sees profit turnaround
By Chris Sleight02 February 2011
Sandvik Mining and Construction achieved operating profits of SEK 4.67 billion (US$ 730 million) in 2010, a ten-fold increase on the figure of SEK 466 million (US$ 73 million) achieved in 2009. Revenues for the year were up +7% to SEK 35.2 billion (US$ 5.51 billion), while the company's order intake for the year rose +36% compared to 2009 to SEK 42.1 billion (US$ 6.59 billion).
The company said business was better in the mining segment than in construction, but added there was a positive trend in both sectors.
A company statement said, "The trend in the construction industry was relatively favourable in Latin America and Asia and improved towards the end of the (fourth) quarter in Europe and the North Atlantic Free Trade Area (NAFTA)."
Underlining the strength of Latin American' markets, Sandvik's sales in the fourth quarter of the year more than doubled compared to 2009 to SEK 1.72 billion (US$ 270 million). However, its biggest market in the quarter was Africa and the Middle East, with sales of SEK 2.23 billion (US$ 349 million).
Underlining the recovery in North America, the company's order intake from the NAFTA region in the final quarter was more than twice what it was a year ago at SEK 1.42 billion (US$ 222 million). However, Europe was down, with sales in the final quarter falling -2% to SEK 1.85 billion (US$ 289 million) and orders falling -8% to SEK 1.94 billion (US$ 304 million).