Engineering group Sandvik reports both higher revenue and adjusted EBITA earnings than expected for the third quarter.
Adjusted EBITA totaled SEK 8.477bn (5.539), which was 2.6 percent higher than analysts' expectations of SEK 8.265bn, according to FactSet consensus. The adjusted EBITA margin strengthened to 22.5 percent (19.5).
Orders received rose to SEK 36.948bn (30.769), in line with expectations of SEK 36.950bn.
Revenue increased 29 percent to SEK 37.728bn (29.218). The outcome was 2.5 percent higher than the FactSet analyst consensus of SEK 36.807bn. Organic growth amounted to 25 percent.
The adjusted EBITA margin was 22.5 percent (19.0).
Net income totaled SEK 5.772bn (3.538). Diluted earnings per share came to SEK 4.60 (2.82).
CEO Stefan Widing highlighted broad-based demand, higher volumes and good price realization as contributing factors to the quarter's performance.
Currently, Stefan Widing occupies the position of President, Chief Executive Officer & Director at Sandvik Aktiebolag.
In his past career Mr. Widing was Executive Vice President for Assa Abloy AB and President & Chief Executive Officer of HID Global Corp. (a subsidiary of Assa Abloy AB).
Sandvik AB is one of the world's leading manufacturers of machines-tools and industrial tools. Net sales break down by family of products as follows:
- machines and tools for mining and infrastructure (52.2%; No. 1 worldwide): drilling semi-trailers, rock perforation tools, excavators, lifting machines, etc.;
- cutting tools and machine-tools (39.2%): intended for machining metals;
- equipment for rock and mineral processing (8.6%): crushing and screening equipment, fixing tools, etc.
Net sales are distributed geographically as follows: Europe (25.2%), North America (25.6%), Asia (17.5%), Africa and Middle East (12.3%), Australia and New Zealand (12.2%) and South America (7.2%).
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