By Juhana Rossi
Swedish engineering group Sandvik AB (SAND.SK) Thursday posted
lower-than-expected drop in third quarter net profit, but
highlighted that earnings were weighed by adverse metal prices and
currency effects, items that will continue to have a negative
impact in to the fourth quarter.
MAIN FACTS:
-Now sees FY capex at about SEK4 billion, down from the SEK5
billion estimate at the end of 2Q.
-Net profit was SEK1.63 billion, versus SEK2.10 billion last
year, beating analyst's expectations of SEK1.55 billion.
-Earnings were negatively impacted by SEK250 million due to the
strength of the SEK and by SEK90 million from changed metal
prices.
-Business conditions for Sandvik's products remained largely
unchanged in 3Q compared with 2Q despite the normal seasonal
slowdown.
-Expects currency rates to hit 4Q operating profit by SEK350
million compared to last year.
-Expects metal prices will hit 4Q operating profit by SEK75
million.
-Revenue was SEK20.42 billion from SEK23.42 billion a year ago,
and below SEK21.83 billion that was the average forecast in a
FactSet survey of 13 analysts.
-Ebit was SEK2.53 billion from SEK3.33 billion a year ago and
below the SEK2.70 billion forecast.
-Order intake was SEK20.22 billion, down from last year's
SEK21.80 billion.
-Mining unit order intake fell 9% to SEK7.03 billion from
SEK8.50 at fixed exchange rates.
-Shares closed Wednesday at SEK89, valuing the company at
SEK111.53 billion.
Write to Juhana Rossi at juhana.rossi@dowjones.com
Order free Annual Report for Sandvik AB
Visit http://djnweurope.ar.wilink.com/?ticker=SE0000667891 or
call +44 (0)208 391 6028
Order free Annual Report for Sandvik AB
Visit http://djnweurope.ar.wilink.com/?ticker=US8002122013 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires