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Sandvik announces full-year results

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World Coal,

Sandvik Mining has reported an operating profit of SEK2.585 billion last year from its continuing operations on total sales of SEK22.421 billion. This compares to an operating profit of SEK2.483 billion in 2014.

Coal accounted for 11% of the companies invoiced sales, making it the third largest market segment after gold (29%) and copper (24%). Africa/Middle East was the biggest market for the company’s equipment, accounting for 26% of invoiced sales, followed by Asia (20%) and North American (17%).

“The underlying market remained low in 2015 as mining companies maintained a cautious approach to investments, not least due to negative price trends for many raw materials,” the company said in its annual report.

“Mining Equipment posted favourable growth in order intake, primarily within underground drilling and load and haul,” the company continued. “Demand for aftermarket products and services remained largely stable, however, with a slight softening in the latter part of the year.”

Its Mining Systems business – which Sandvik has earmarked for divestment and supplies material handling equipment to mining projects – recorded a SEK1.208 billion loss on sales of 4.977 billion.

Overall, Sandvik Mining accounted for 30% of the companies invoiced sales and 19% of its operating profit in 2015, second to Sandvik Machining Solutions. Total invoiced sales were SEK91 billion.

Sandvik suppliers equipment, tools, service and technical solutions for exploration, excavation and processing of rock and minerals for both underground and opencast mines.

The company also continued to reorganise under new CEO, Björn Rosengren. This has seen a number of changes to the company’s executive management committee, including the appointed of Lars Engstrom as President of Sandvik Mining.

The company has also recently announced the merging of its construction and mining businesses into a new Sandvik Mining and Rock Technology business. Sandvik Construction recorded an operating profit of SEK28 million in 2015, compared to SEK45 million in 2014. Sales were down 9% to SEK8.551 billion.

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