Sandvik Q3 profits rise as all units improve; below consensus - UPDATE |
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Fri, 26 Oct 2007 07:15
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(Updating with business area breakdown)STOCKHOLM (Thomson Financial) - Sandvik AB said its third-quarter profit after financials rose 20 pct to 3.104 bln skr, on the back of strong demand, with all business areas improving profits and margins.Market expectations were for a third-quarter profit after financials of 3.337 bln skr, according to a survey by SME Direkt.Sales rose 21 pct to 21.216 bln skr, ahead of market expectations of 21.076 bln skr. Excluding currencies and for comparable units, sales rose 16 pct.Order intake amounted to 21.259 bln skr, up 11 pct from a year earlier excluding currencies and for comparable units. Market expectations were for an order intake of 21.765 bln skr.'The underlying driving forces remained strong and demand for Sandvik's products was high during the third quarter. High volumes and capacity utilization offset the usual seasonal weakening,' said Sandvik's chief executive, Lars Pettersson.Among the company's divisions, operating profit increased by 17 pct to 1.442 bln skr at Sandvik Tooling. Operating margins improved to 24.1 pct from 23.3 pct and order intake rose 10 pct at fixed exchange rates and for comparable units.'The profit increase was mainly attributable to high volumes, favorable price trends, high capacity utilization, a better product mix and completed efficiency enhancements,' Sandvik said.At Sandvik Materials Technology, operating profits jumped 31 pct to 621 mln skr, while operating margins rose to 11.6 pct from 10.5 pct.'Operating profit in the third quarter increased compared with the preceding year, primarily due to a better product mix, a favorable price trend and increased internal efficiency,' said Sandvik.Sandvik Mining and Construction saw its operating profits climb 32 pct to 1.260 bln skr. Here also the increase in operating profit was mainly a result of higher volumes, high capacity utilisation and increased efficiency. Operating margins increased slightly to 15.0 pct from 14.6 pct.hans.chumakonde@thomson.comhc/wj/hc/raCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Sandvik Q3 profits rise as all units improve; below consensus 