DSI lifts Sandvik three-month sales, orders

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Sandvik’s new TH550B battery electric mining truck.
Major acquisition expands Swedish group’s mining business

Sandvik’s now-completed €943 million acquisition of DSI Underground has helped lift its mining business September-quarter order intake to the “highest ever” level for a three-month period, while group revenues were up 24% year-on-year at SEK24,826m (€2479m) and EBITA climbed 33% yoy to SEK4731m (€472m).

CEO Stefan Widing said “thanks to DSI”, the company’s dominant Sandvik Mining and Rock Solutions (SMR) arm saw its total order intake surge by 41%.

“We have now also welcomed DSI into the group, and the performance of this new ground support division got off to a strong start,” Widing said.

Sandvik’s mining business contributed about 40% of its 2020 revenues. DSI’s 2020 sales totalled €596m.

The Swedish manufacturer’s group revenues for the first nine months of this year were up 9% yoy to €6985m (US$8120m), while net profit improved 74% for the period to €1061m (US$1233m). SMR accounted for €2817m (US$3275m) of revenue and the division’s EBITA rose 18% yoy to €587m (US$682m).

Sandvik’s total group headcount at the end of September was 15,454, up 29% from a year earlier after the company added about 2000 DSI employees.

“Demand for Sandvik Mining and Rock Solutions [in Q3] continued the positive trajectory we have seen throughout the year, and the quarterly order intake was the highest ever,” said Widing.

“Organic order intake grew by 21%.

“We continued to see an accelerated interest in our automation solutions and battery electric mining vehicles and at this year’s MINExpo [in Nevada, USA] we introduced our third-generation battery electric truck for highly productive and more sustainable mining.”

Sandvik’s new TH550B battery electric truck has 50-ton payload capacity and has the manufacturer’s patented AutoSwap battery-swapping feature.

Aftermarket business accounted for 64% of Sandvik’s total Q3 revenues, versus 36% for equipment sales.

“Through the acquisition of DSI SMR has increased the aftermarket business and strengthened its leading market position in underground mining and tunnelling. The acquisition contributed to 19% in revenue growth in the third quarter,” Widing said.


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