US Markets

Sandvik Q3 orders just miss forecasts, taking shine off earnings beat

Swedish metal-cutting tools and mining gear maker Sandvik reported quarterly order intake just short of market forecasts on Friday as weakness in the energy and aerospace sectors weighed, overshadowing an earnings beat and sending shares 4% lower.

Adds background, detail, CEO comment

STOCKHOLM, Oct 16 (Reuters) - Swedish metal-cutting tools and mining gear maker Sandvik SAND.ST reported quarterly order intake just short of market forecasts on Friday as weakness in the energy and aerospace sectors weighed, overshadowing an earnings beat and sending shares 4% lower.

The company, one of the first major Nordic industrial firms to report July-September earnings, said order intake fell 11% organically to 19.91 billion crowns ($2.25 billion), just short of the 20.02 billion seen by analysts according to Refinitiv estimates.

"We expect the gradual recovery to continue, but the market

conditions will be uncertain until we have put the pandemic

firmly behind us," Chief Executive Stefan Widing said in a statement.

"We are continuing to shift our short-term savings toward permanent initiatives to adjust to the suppressed demand also in the mid-term in aerospace and oil & gas."

The group is considered a good gauge of industrial demand due to high shipping volumes of its cutting tools, which have short lead times from order booking to delivery and a wide customer base.

Third-quarter operating earnings at the firm, which competes with the likes of U.S. Kennametal KMT.N rose to 3.46 billion crowns from 3.00 billion a year earlier, beating the 3.31 billion crown mean analyst forecast in a Refinitiv poll.

The company said in a separate statement it had decided to proceed with plans to list its specialty steel unit Materials Technology, intending to propose the listing at a shareholders' meeting in 2022

($1 = 8.8539 Swedish crowns)

(Reporting by Johannes Hellstrom; Editing by Simon Johnson)

((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters Messaging: johannes.hellstrom.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SAND KMT

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More