Order intake remained strong at 26.2 billion SEK and invoiced sales reached 25.9 billion SEK, an increase of 8% in price and volume.
However, for Sandvik order intake declined by 9% compared with the second quarter in the preceding year, including a negative effect of 6% related to changed metal prices.
The market situation for Sandvik Materials Technology remained fragmented also in thesecond quarter. Demand was stable for products to the oil and gas sector while the level of uncertainty increased somewhat in several other segments.
"Overall demand remained favourable also in the second quarter of the year for the majority of Sandvik's customer segments,” said Olof Faxander, Sandvik's president and CEO. “Similar to previous quarters, both Sandvik Mining and Sandvik Machining Solutions noted high demand, while the other business areas all faced a more challenging market situation.
"“Europe weakened slightly while the scenario in North and South America remained strong,” he added. “Healthy demand and progress ahead of the plan regarding our cost savings resulted in an improved operating profit of 4.2 billion SEK, or 16.2% of invoiced sales. An area of strategic importance where challenges remain is capital efficiency, in which Sandvik has tangible improvement potentials."
Sandvik Mining received major orders in Asia for a total value of approximately 1.3 billion SEK. The mining industry retained a high level of demand during the quarter. Despite the strong development overall, regional differences were notable. Demand rose significantly in Asia, strongly driven by the major systems order received for continuous mining equipment for overburden removal and coal handling. Africa and North America remained relatively flat while demand declined in Europe as demand for crushing weakened.