STOCKHOLM, Jan 20 (Reuters) - Sweden's Sandvik
reported earnings and order intake above market expectations on
Thursday, boosted by continued strong demand for mining
One of the first major Nordic industrial firms to report on
the fourth quarter, Sandvik is considered a good gauge of
industrial demand due to high shipping volumes of its cutting
tools, which have short lead times from order booking to
delivery and a wide customer base.
The metal-cutting tools and mining gear maker said
like-for-like order bookings grew 23% to 30.90 billion crowns
($3.40 billion), helped by a 30% rise at its mining unit,
beating analysts' expectations of 27.76 billion.
It said its Machining Solutions division also had a solid
order intake, with the first weeks of January "continuing on a
Sandvik CEO Stefan Widing said there was a good recovery
within the aerospace and energy sectors, although challenges
such as logistics constraints and the pandemic remained.
"So far we see a very strong demand, which indicates a very
limited impact from a business point of view," he told a news
conference, referring to the Omicron coronavirus variant.
Jefferies said Sandvik had kicked off the reporting season
with a solid quarter, while dividends were "a touch weak."
The mining sector accounts for almost 40% of Sandvik's
sales. Engineering and automotive industries make up roughly a
The company's adjusted operating profit rose to 5.11 billion
crowns in the quarter from 4.51 billion a year earlier, above a
5.09 billion mean forecast, according to a Refinitiv poll of
Sandvik proposed a dividend of 4.75 crowns per share for
2021 versus 4.50 crowns in 2020, below a mean forecast of 5.30
crowns in the poll.
Shares in the firm, which competes with the likes of Epiroc
and Kennametal, rose 2.0% in early trade.
($1 = 9.1006 Swedish crowns)
(Reporting by Helena Soderpalm
Editing by Johan Ahlander and Mark Potter)