Sandvik Distributes Proforma Numbers for Sandvik Mining and Rock Technology

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Jan 10, 2020, 10:43 ET

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

557

-50

659

-45

-8

% of revenues

6.5

5.0

129.0

-10.8

18.5

-9.5

15.4

-1.6

Adjusted operating profit*

-61

-50

-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

9.0

10.0

-0.4

No. of employees

2,547

2,611

1,102

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.

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Sandvik distributes proforma numbers for Sandvik Mining and Rock Technology

SOURCE Sandvik