Q3 2024 Sandvik AB Earnings Call Transcript
Key Points
- Sandvik AB (SDVKF) reported a strong cash flow of SEK6.8 billion for the quarter, indicating robust financial health.
- The company achieved significant savings from restructuring programs, amounting to SEK388 million, which positively impacted the financial results.
- Sandvik AB (SDVKF) saw solid momentum in its mining and software businesses, with double-digit growth in the aftermarket segment.
- The acquisition of Universal Field Robots is expected to strengthen Sandvik AB (SDVKF)'s mine automation offerings.
- Participation in major industry trade shows like MINExpo and IMTS showcased Sandvik AB (SDVKF)'s new innovations, enhancing its market presence.
- Total revenues declined by 4% year-over-year, with organic revenue growth being negative at 1%.
- The cutting tools segment was negatively impacted by a weak macroeconomic environment, particularly in Europe and China.
- The automotive segment experienced significant declines, particularly in Europe, affecting overall performance.
- Currency fluctuations had a negative impact on both orders and revenues, reducing the top line by approximately 5%.
- There is continued caution on new equipment sales in the mining sector, with customers preferring to prolong the life of existing machines.
Hi everyone. A warm welcome to Sandvik's presentation of the third-quarter results 2024. My name is Louise Tjeder, Head of Investor relations. Beside me, I have our CEO Stefan Widing, and CFO Cecilia Felton.
We will as we usually do start with the presentation, Stefan and Cecilia will take you through the highlights of the third quarter and after that, we will have time for your questions. So without further ado over to you Stefan.
Thank you, Louise. Also from my side, welcome to our third-quarter report in 2024. If we summarize the quarter, I think we see a mixed demand environment and in that context, we deliver a stable top line this quarter.
We see solid momentum in our mining and software businesses. While the cutting tools have been negatively impacted by a weak macro environment.
Total order intake is flat year on year and organic growth was 2%. Total
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