The business development during January and
During March the uncertainty around the coronavirus situation has gradually increased in many other parts of the world. Most production units in the
Although Sandvik currently believes that the direct impact on its financial performance during the first quarter will be limited, Sandvik has identified a need to mitigate future effects on our businesses from the rapid spread of the coronavirus.
Sandvik has therefore initiated measures that will be taken across the group and include activities that support savings both short-term and long-term. The initial focus is on short-term activities with quick impact such as reduced worktime, reduction of temporary employees and consultants, and reduced discretionary spend. Structural changes and reductions in work force to adopt to changed market conditions also in the longer term are in addition being reviewed.
"The coronavirus situation has escalated around the world and we have to adapt to this dramatic change in global business conditions. Divisions within all three business areas are taking prompt action in order to secure our long-term market leading positions and protect our company," says
Temporary short-term actions primarily related to reduced working hours, will generate savings of about
Actions to reduce worktime will mean a temporary negative effect on the compensation for many employees. The members of the
Due to the current instability in the market and as a precautionary measure the Board of Directors of Sandvik proposes that the Annual General Meeting resolve on a dividend of
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