Sweden’s Sandvik saw a 50% year-on-year increase in first-quarter revenues and orders in its dominant mining and rock solutions business in the first three months of 2022.
The company said overall revenues climbed 9% yoy to SEK24.92 billion (US$2.64 billion) while orders were higher for the fifth consecutive quarter at SEK30.47b (US$3.23b), up 13% yoy.
Adjusted EBITA for the first quarter of 2022 was US$534m; profit for the period was $360m and earnings per share came in at about 30c.
Sandvik Mining and Rock Solutions, which contributed 41% of Sandvik’s 2021 revenues, posted SEK12.029b (US$1.27b) of Q1 sales, down on the December quarter but 50% higher than the SEK8.019b reported last year. Orders grew from SEK10.47b in Q1 last year to SEK16.06b (US$1.7b) in 2022.
The company said four major mining orders worth SEK1.3b (US$138m) were booked in Q1, 2022.
CEO Stefan Widing said concerns about the “geopolitical situation” in Europe erased early 2022 optimism around easing COVID restrictions.
“Despite this, our business performance has been strong, and the first quarter of 2022 marked the fifth consecutive quarter with double-digit growth in orders, reflecting a continued broad-based strength in underlying demand and a solid execution of our shift to growth strategy,” he said.
Widing said Sandvik Mining and Rock Solutions aftermarket (71% of Q1 revenues) and consumables orders were at record levels in the first three months of 2022.
“While continuing to navigate in a challenging supply chain environment, we successfully delivered on the strong backlog,” he said.
The company saw “continued strong momentum within mining, with aftermarket and consumables businesses on all-time high, and continued record levels for our major equipment divisions … with order intake growth of 42% in Australia, 27% in North America and 25% in Asia”.
“In line with our strategic priority to drive automation and electrification, we further expanded our battery-electric (BEV) offering by introducing the largest-capacity BEV truck for underground; engineered to improve productivity, sustainability and cost efficiency in bulk mining operations.”