Operating profit at Sandvik Mining continuing operations fell 16% to SEK720 million on revenues of SEK 5.1 billion in 2Q16. Operating profit for the first six months of the year was up 31%, however, to SEK1.4 billion compared to SEK1.1. billion the year before.
The continuing operations results exclude the Mining Systems business, which the company intends to divest.
Order intake remained largely stable, showing only a slight fall of 2%, as overall customer activity remained relatively unchanged. Orders fell in the Africa and the Middle East and North America, offsetting gains elsewhere.
Orders for mining equipment fell slightly, while order intake for aftermarket products remained stable.
From 1 July, Sandvik Mining and Sandvik Construction will be combined into one business area: Sandvik Mining & Rock Technology with Lars Engstrom taking the role as President.
The company also recently announced the sale of its Mining Systems business to private equity company CoBe Capital. The transaction is expected to close in 4Q16 and entails a capital loss of SEK800 million, which will impact results for 3Q16.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/25072016/sandvik-mining-operating-profit-falls-in-2q16-2016-2069/