Sandvik AB (OSTO:SAND)
kr 212.3 0.5 (0.24%) Market Cap: 254.77 Bil Enterprise Value: 302.22 Bil PE Ratio: 21.84 PB Ratio: 2.97 GF Score: 84/100
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Q2 2024 Sandvik AB Earnings Call Transcript

Jul 19, 2024 / 10:30AM GMT
Release Date Price: kr213.5 (-0.84%)

Key Points

Positve
  • Sandvik AB (SDVKF) reported a stable financial performance despite mixed demand across different sectors.
  • Order intake growth was 2% in total, with a 3% positive organic growth.
  • Savings from restructuring programs amounted to SEK275 million in the quarter.
  • The company expanded its market presence in China with the acquisition of Suzhou Ahno and in the US with PDQ.
  • Double-digit growth was observed in the software businesses, particularly in mining and manufacturing solutions.
Negative
  • Revenues declined by 3% in total, with a negative 2% organic growth.
  • Adjusted EBITDA decreased by 7% versus last year, corresponding to a margin of 19.6%.
  • General engineering and automotive sectors experienced a decline in demand.
  • Infrastructure demand remained weak, with regional variations.
  • The margin was impacted by lower volumes and cost inflation, leading to a year-over-year dilution.
Louise Tjeder
Sandvik AB - Vice President, Head - Investor Relations, Sandvik Group Spokesperson

Hello, everyone, and a warm welcome to Sandvik's presentation of the second-quarter results 2024. My name is Louise Tjeder, Head of Investor Relations here at Sandvik. And beside me, I have our CEO, Stefan Widing; and CFO, Cecilia Felton.

We will start with the presentation. Stefan and Cecilia will take you through the highlights of the quarter, and after that, we will move on to the Q&A session.

And with this short introduction, I will hand over the word to you, Stefan.

Stefan Widing
Sandvik AB - President, Chief Executive Officer, Director

Thank you, Louise. And also from my side, welcome to the second-quarter report for Sandvik in 2024. If we summarize the quarter, we saw a stable development in the quarter, but the demand picture was mixed. We saw robust demand in mining and aerospace, while general engineering and automotive declined, and also, infrastructure remained weak, but with some regional variations that I will come back to.

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