Sandvik distributes proforma numbers for Sandvik Mining and Rock Technology

Sandvik announced on 28 October 2019 that the agreement to divest the majority of Drilling and Completions (Varel) was signed. As earlier stated, the related write-down impacted the net profit in the fourth quarter of 2019 by -3.9 billion SEK, out of which -4.2 billion SEK impacted operating profit negatively whilst impact on taxes was positive by +0.3 billion SEK.

Related to the ongoing divestment, Varel has been moved out of Sandvik Mining and Rock Technology and is instead reported in Other Operations until expected closure of the deal, during the first quarter of 2020.

In line with the decentralized model, Sandvik has simultaneously re-allocated the lease stock related to mining equipment from Group activities to Sandvik Mining and Rock Technology, hence capital employeed in Sandvik Mining and Rock Technology has increased by about 3 billion SEK on average.

Proforma numbers allow for both the ongoing divestment and the re-allocation of capital employed.

Sandvik Mining and Rock Technology Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019
                   
Order intake 9,832 10,986 10,036 10,988 41,842 11,369 11,318 11,006  
Revenues 8,926 10,471 10,406 11,254 41,058 10,103 11,233 11,244  
Operating profit 1,422 1,867 1,933 2,170 7,452 1,817 2,126 2,014  
   % of revenues 15.9 17.8 19.2 19.3 18.2 18.0 18.9 17.9  
Adjusted operating profit* 1,422 1,867 1,993 2,260 7,542 1,817 2,126 2,338  
  % of revenues 15.9 17.8 19.2 20.1 18.4 18.0 18.9 20.8  
Return on capital employed 32.6 32.5 33.0 33.9 33.9 33.1 32.4 31.3  
No. of employees 14,229 14,463 14,492 14,397 14,397 14,543 14,794 14,555  
                               

Other Operations, consisting of Varel and items related to previous divestments (Hyperion and Sandvik Process Systems).

Other Operations Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019
                 
Order intake 1,365 1,343 432 465 3,605 471 549 510
Revenues 1,260 1,403 432 465 3,560 471 549 510
Operating profit 82 70 557 -50 659 -45 85 -8
   % of revenues 6.5 5.0 129.0 -10.8 18.5 -9.5 15.4 -1.6
Adjusted operating profit* 82 70 -61 -50 41 -45 -26 -8
   % of revenues 6.5 5.0 -14.2 -10.8 1.1 -9.5 -4.7 -1.6
Return on capital employed 53.8 54.5 67.0 10.3 10.3 9.0 10.0 -0.4
No. of employees 2,547 2,611 1,102 1,089 1,089 1,061 1,098 1,095

*Adjusted for items impacting comparability

Stockholm, 10 January 2020
 

Sandvik AB

For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, phone: +46 8 456 14 94 or Martin Blomgren, Press and Media Relations Manager, phone: +46 70 577 0549.

--------------------------------------------------------------------------------------------------------------------------------------------------------
Sandvik Group
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2018, the Group had approximately 42,000 employees and revenues of about 100 billion SEK in more than 160 countries within continuing operations.

Tags:

About Us

Sandvik Group Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and sustainability. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2019, the Group had approximately 40,000 employees and revenues of about 100 billion SEK in more than 160 countries within continuing operations.