Sandvik Distributes Proforma Numbers for Sandvik Mining and

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|Jan 11|magazine59 min read

SANDVIKEN, Sweden, Jan. 10, 2020 /PRNewswire/ -- Sandvik announced on 28 October 2019 that the agreement to divest the majority of Drilling and Completions (Varel) was signed. As earlier stated, the related write-down impacted the net profit in the fourth quarter of 2019 by -3.9 billion SEK, out of which -4.2 billion SEK impacted operating profit negatively whilst impact on taxes was positive by +0.3 billion SEK.

Related to the ongoing divestment, Varel has been moved out of Sandvik Mining and Rock Technology and is instead reported in Other Operations until expected closure of the deal, during the first quarter of 2020.

In line with the decentralized model, Sandvik has simultaneously re-allocated the lease stock related to mining equipment from Group activities to Sandvik Mining and Rock Technology, hence capital employeed in Sandvik Mining and Rock Technology has increased by about 3 billion SEK on average.

Proforma numbers allow for both the ongoing divestment and the re-allocation of capital employed.

                                   

Sandvik Mining and Rock Technology

Q1 2018

Q2 2018

Q3 2018

Q4 2018

FY 2018

Q1 2019

Q2 2019

Q3 2019











                                   

Order intake

 

9,832

 

10,986

 

10,036

10,988

41,842

11,369

11,318

11,006


                                   

Revenues

 

8,926

 

10,471

 

10,406

11,254

41,058

10,103

11,233

11,244


                                   

Operating profit

 

1,422

 

1,867

 

1,933

2,170

7,452

1,817

2,126

2,014


                                   

  % of revenues

 

15.9

 

17.8

 

19.2

19.3

18.2

18.0

18.9

17.9


                                   

Adjusted operating profit*

 

1,422

 

1,867

 

1,993

2,260

7,542

1,817

2,126

2,338


                                   

  % of revenues

 

15.9

 

17.8

 

19.2

20.1

18.4

18.0

18.9

20.8


                                   

Return on capital employed

 

32.6

 

32.5

 

33.0

33.9

33.9

33.1

32.4

31.3


                                   

No. of employees

 

14,229

 

14,463

 

14,492

14,397

14,397

14,543

14,794

14,555


















Other Operations, consisting of Varel and items related to previous divestments (Hyperion and Sandvik Process Systems).

   Operations

Q1 2018

Q2 2018

Q3 2018

Q4 2018

FY 2018

Q1 2019

Q2 2019

Q3 2019

                                   










                                   

Order intake

 

1,365

 

1,343

 

432

 

465

 

3,605

 

471

 

549

 

510

 

                                   

Revenues

 

1,260

 

1,403

 

432

 

465

 

3,560

 

471

 

549

 

510

 

                                   

Operating profit

 

82

 

70

 

557

 

-50

 

659

 

-45

 

85

 

-8

 

                                   

  % of revenues

 

6.5

 

5.0

 

129.0

 

-10.8

 

18.5

 

-9.5

 

15.4

 

-1.6

 

                                   

Adjusted operating profit*

 

82

 

70

 

-61

 

-50

 

41

 

-45

 

-26

 

-8

 

                                   

  % of revenues

 

6.5

 

5.0

 

-14.2

 

-10.8

 

1.1

 

-9.5

 

-4.7

 

-1.6

 

                                   

Return on capital employed

 

53.8

 

54.5

 

67.0

 

10.3

 

10.3

 

9.0

 

10.0

 

-0.4

 

                                   

No. of employees

 

2,547

 

2,611

 

1,102

 

1,089

 

1,089

 

1,061

 

1,098

 

1,095

 

*Adjusted for items impacting comparability

Stockholm, 10 January 2020
 

Sandvik AB

For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, phone: +46-8 456-14-94 or Martin Blomgren, Press and Media Relations Manager, phone: +46-70-577-0549.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/sandvik/r/sandvik-distributes-proforma-numbers-for-sandvik-mining-and-rock-technology,c3006009

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Sandvik distributes proforma numbers for Sandvik Mining and Rock Technology

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SOURCE Sandvik