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The Sandvik workshop group raises on the Stockholm Stock Exchange after today’s report. Turnout increases more than two percent after order intake has exceeded analyst expectations.
The Sandvik workshop group has presented provisional figures. Stock Photography.
Order intake amounted to SEK 25,356 million, compared to SEK 27,873 million in the same quarter last year. Here, expectations averaged SEK 24.1 billion, according to the Refinitiv compilation.
At the same time, the company reported a pre-tax profit of SEK 2,346 million for the first quarter of 2020. This compares with a profit of SEK 4,189 million for the period 2019. Sales were SEK 23,620 million in compared to SEK 25,025 million the previous year.
Company CEO Stefan Widing warns of production stoppages linked to the crown pandemic:
“During the last week of March, Sandvik Machining Solutions saw a sharp drop in demand of approximately minus 25 percent compared to the same period last year. In the near future, we expect a very low level of business operations in our short-cycle units, as most customer segments are affected by stoppages in production, writes the CEO in a comment.
The company has previously announced that it will withdraw the dividend proposal.
“Although we have a solid financial position, we currently face a high degree of uncertainty in the market. Consequently, as a precautionary measure, the Board of Directors withdrew its dividend proposal to the 2020 Annual General Meeting. When the market has stabilized and the company’s financial position admits it, the Board intends to reevaluate the situation ” writes the CEO.
