Sandvik reports record-high operating profit for 2017

February 8, 2018

Sandvik AB, Stockholm, Sweden, has published its Annual Report for 2017. The company stated that 2017 had been a strong year, in which the group saw a significant increase in customer activity as well as delivery on internal efficiencies. This was reported to have resulted in record-high adjusted operating profit of 14.6 billion SEK (2016: 11.0 billion SEK), a significant improvement in adjusted operating margin to 16.1% (2016: 13.5%) and a record high operating cash flow of 14.7 billion SEK (2016: 12.5 billion SEK).

According to the report, Sandvik saw improved demand in all customer segments and in all geographical regions in 2017, with order intake noting organic growth of 15%. Björn Rosengren, Sandvik President and CEO, stated, “I am very pleased with our diligent focus on cost efficiency in this period of high business activity, as well as our product innovations that create value for our customers by offering increased sustainable productivity.”

He stated that the group saw particularly good performance over the year in Sandvik Machining Solutions and Sandvik Mining and Rock Technology; the strongest growth was reported in the mining segment, due to a significant improvement in demand for replacement equipment as well as higher demand in the aftermarket business.

Across the group, changed exchange rates were said to have had a positive impact of 1% on both order intake and revenues. Sandvik’s order intake for the full year amounted to 95,444 million SEK (2016: 81,861 million SEK), and revenues were 90,905 million SEK (2016: 81,553 million SEK), implying a book-to-bill ratio of 105%. Changed metal prices had a positive impact of 113 million SEK (64). Net financial items amounted to -1,080 million SEK (2017: -1,652 million SEK) and the profit after financial items was 17,018 million SEK (2016: 9,366 million SEK).

During the year, Sandvik received several recognitions for sustainability. Most recently, the company was listed No. 65 out of the Global 100 most sustainable companies by Corporate Knights, presented at the World Economic Forum in Davos. “This was a great achievement and confirmation that sustainability is truly an integral part of our business,” stated Rosengren.

In 2017, the company concluded the divestments of Sandvik Process Systems and Mining Systems (discontinued operations) and announced a new owner for Hyperion, and completed the divestment of the welding wire business to ESAB in early 2018. These businesses were said to account for some 10% of group revenues, and their divestments were expected to create additional balance sheet capacity to grow the core business of Sandvik.

www.home.sandvik/en/

Powder Injection Moulding International magazine

In the latest issue of PIM International…

Download PDF

Extensive MIM, CIM industry and sinter-based AM industry news, plus the following exclusive deep-dive articles and reports:

  • Frank Petzoldt on the past, present and future of MIM
  • Saturation in metal Binder Jetting
  • Insights from the 2022 International Conference on Injection Molding of Metals, Ceramics and Carbides
  • Additive Manufacturing at CeramTec
  • The carbon footprint of injection moulding machines
  • Calculating the sintering shrinkage of MIM parts

The latest news from the MIM, CIM and sinter-based AM industries

Don't miss any new issue of PIM International, and stay up to date with the latest industry news. Sign up to our fortnightly newsletter.

Sign up

News from the industry…

    Discover our magazine archive…

    The free-to-access PIM International magazine archive offers unparalleled insight into the world of MIM, CIM and sinter-based AM from a commercial and technological perspective through:

    • Reports on visits to leading part manufacturers and industry suppliers
    • Articles on technology and application trends
    • Information on materials developments
    • Reviews of key technical presentations from the international conference circuit
    • International industry news

    All past issues are available to download as free PDFs or view in your browser.

     

    Browse the archive

     

    Looking for suppliers of materials, production equipment and finished MIM, CIM or sinter-based AM parts?

    Discover suppliers of these and more in our advertisers’ index and buyer’s guide, available in the back of PIM International.

    • Metal powders
    • MIM, CIM & AM parts producers
    • Binders & feedstocks
    • Feedstock mixers
    • Furnaces & furnace supplies
    • Atmospheres & gas generation
    • HIP systems & services
    • Injection moulding machines
    • AM technology
    • Debinding systems
    Download PDF
    Share via
    Copy link
    Powered by Social Snap