Sandvik CEO Stefan Widing says the mining and infrastructure equipment major is seeing signs new equipment demand is “flattening”, though continuing robust aftermarket activity drove record overall third-quarter mining sales.
“We think it’s prudent to signal that we think the market is flattening out in terms of new equipment going forward,” Widing said on a briefing call after Sandvik reported a 35% year-on-year increase in group Q3 revenue to SEK29,267m (US$2.63 billion) and 28% rise in quarterly order intake to SEK29,231 million (US$2.62b).
EBITA for the period was up 27% yoy to SEK5889m (US$528m) for a 20.1% EBITA margin.
“We are of course pleased that we again are back within our margin corridor of 20-to-22%,” Widing said.
“We did have some items affecting comparability primarily related to our Russia wind-down in the quarter. But we were also pleased to see that we are now more or less fully done with that. We have written off the assets and we have taken the provisions we need to complete the exit of Russia.”