Sandvik margins strong in slowing market

Staff reporter

Sweden’s Sandvik is maintaining high margins in the face of slowing mining and mineral processing equipment sales, reporting a Q3 group margin of 20.1% on 8% higher revenues of SEK31,476 million (US$2.87 billion) compared with the same period last year.

Sandvik Mining and Rock Solutions September-quarter adjusted EBITDA was up 16% year-on-year at SEK3548 million (US$323m) and grew 27% in the first nine months of the year to SEK10,244m, on 11% and 20% higher revenues, respectively, for the latest quarter and first nine months of 2023.

Sandvik Mining and Rock Solutions contributed Q3 2023 revenue of SEK16,674m (US$1519m), with aftermarket business accounting for 66% and equipment sales 34%. Orders were down 5% yoy for the period at SEK14,702m (US$1340m).

Sandvik Rock Processing Solutions, boosted by the acquisition SP Mining, lifted Q3 order intake 29% and revenues by 22% yoy, but saw both fall 8% yoy on an organic basis.

Revenues were at SEK2854m (US$260m) and orders totalled SEK2824m (US$257m) in Q3 2023.

Sandvik Manufacturing and Machining had flat sales in Q3 of SEK11,948m.

Sandvik said mid and long-term structural drivers of underlying demand for Sandvik Mining and Rock Solutions products and services were unchanged but a more uncertain macro environment “may lead to a slightly more cautious market short-term”.

It said its digital mining technologies division continued its growth momentum, “with double-digit organic growth yoy”.

“Both Sandvik Mining and Rock Solutions and Sandvik Rock Processing Solutions noted the strongest growth in Africa, Middle East, and in particular India in the Asia region,” the company said.


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