By Clemens Bomsdorf
COPENHAGEN--Swedish engineering group Sandvik AB (SAND.SK)
Friday posted a 33% fall in second-quarter net profit as lower
demand from the mining industry, production rates, adverse currency
effects and non-recurring charges all weighed.
MAIN FACTS:
-Net profit attributable to shareholders was SEK1.86 billion,
versus SEK2.78 billion last year, beating analyst's expectations of
SEK1.77 billion.
-Production rates were maintained at the level of sales in order
to further reduce inventories.
-"Most of Sandvik's major market segments remained stable.
However, the low investment levels from miners continues to be
noticeable for this part of our business," Chief Executive Olof
Faxander said in a statement.
-Sandvik keeps its 2013 capex forecast of around SEK5
billion.
-Given currency rates, stock levels and metal prices at the end
of June, it is estimated that 3Q operating profit will be
negatively affected by about SEK125 million.
-Earnings were negatively impacted by almost SEK600 million due
to a strong SEK, negative metal price effects and nonrecurring
items
-Revenue was SEK23.04 billion, from SEK25.94 billion a year ago
and higher than the SEK22.97 billion that was the average forecast
in a FactSet survey of 16 analysts.
-Ebit was SEK2.96 billion, compared with SEK4.21 billion a year
ago and SEK3.13 forecasted by analysts.
-Order intake was SEK20.72 billion, down 21% from last year's
SEK26.19 billion.
-Mining unit order intake fell 30% to SEK6.65 billion from
SEK10.32 at fixed exchange rates.
-Shares closed Thursday at SEK84.60, valuing the company at
SEK106.12 billion.
Write to Clemens Bomsdorf at clemens.bomsdorf@dowjones.com
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