DOW JONES NEWSWIRES
Swedish engineering group Sandvik (SAND.SK) Friday reported a
weaker than expected net profit for the first quarter as weak
demand in the mining sector continued to weigh on the company.
MAIN FACTS:
-"The negative effects of the downturn in the mining industry
and the current weak performance of Sandvik Construction are
largely being offset by the improving conditions for and enhanced
performance of Sandvik Machining Solutions, Sandvik Materials
Technology and Sandvik Venture," said Chief Executive Olof Faxander
in a statement.
-Net profit for the first quarter was largely flat at SEK1.49
billion, compared with SEK1.48 billion in the same period last
year. This was weaker than the SEK1.58 billion analysts polled by
Factset had expected.
-Sales came in at SEK20.78 billion, down 6% from SEK22.10
billion last year. Analysts saw sales at SEK21.29 billion for the
first quarter.
-Operating profit was SEK2.48 billion, down from SEK2.26 billion
in the same period last year and worse than analysts' expectations
of an operating profit of SEK2.61 billion.
-In its guidance for the second quarter Sandvik estimates that
currency effects will impact operating profit negatively by about
SEK150 million compared with the second quarter of 2013.
-It also said operating profit for the second quarter will be
positively affected by about SEK100 million from currency rates,
stock levels and metal prices.
-Financial items are seen between SEK1.8 billion and SEK2.0
billion in 2014.
-Shares closed at SEK95.35 Thursday
Write to Christina Zander at christina.zander@wsj.com
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