Sandvik CEO Stefan Widing says continuing strong growth in the company’s mining equipment and services arm is being aided by non-diesel machine sales and a solid contribution from its expanding mining digital business.
Announcing a 24% year-on-year increase in first-quarter group revenue to SEK30,968 million (US$3 billion) and 13% higher order intake of SEK34,363 million (US$3.3 billion), Widing said the company’s mining and rock solutions division achieved an “all-time high order intake level” in Q1, including “particularly strong growth in load and haul, parts and services and digital mining technologies”.
Mining and rock solutions accounted for nearly half the group’s Q1 sales (US$1.49 billion), while mineral processing equipment and aftermarket (Sandvik rock processing solutions) added $285 million (up 43% yoy on the back of SP Mining acquisition) and manufacturing and machining solutions generated $1.23 billion of revenue.
Q1 mining and rock solutions orders topped $1.7 billion, with equipment order intake down 17% for the period yoy and aftermarket surging 15%.
Mining and rock solutions’ aftermarket business accounted for 68% of Q1 revenues and equipment 32%.
Widing said cost inflation was being offset by stronger pricing.
The group posted net profit for Q1 of SEK3816 million ($370 million) and generated free operating cash flow of SEK3710 million ($360 million).
“The fact that our digital mining technologies division had exceptionally strong organic order growth in the quarter is a good example of the progress we make in our strategic focus areas,” Widing said.
“The shift to battery electric vehicles accelerated further.
“We announced several BEV orders in the quarter, including two of our three biggest BEV orders ever. To support the growing BEV market, Sandvik announced the investment in a new production site in Malaysia.
“We plan to get production started by the end of the year.
“We also won an order from the world’s largest copper producer, to supply an AutoMine Fleet automation system with six autonomous loaders.”