Sandvik 2Q Beats Views, Sees Increased Uncertainty Ahead

Swedish engineering company Sandvik AB (SAND.SK) Thursday reported a forecast-beating rise in second-quarter net profit, driven by an ongoing efficiency program, but said economic uncertainty had increased, especially in Europe, and that it was entering the third quarter with more caution.

 
   MAIN FACTS: 

-2Q net profit rose to SEK2.78 billion from SEK2.11 billion a year earlier and against expectations for SEK2.51 billion.

-2Q revenue rose to SEK25.94 billion from SEK23.42 billion and against expectations for SEK25.24 billion.

-2Q Ebit rose to SEK4.21 billion from SEK3.56 billion and against expectations for SEK4.01 billion, its highest quarterly profit to date.

-2Q order intake rose to SEK26.19 billion from SEK25.36 billion a year earlier.

-2Q operating margin rose to 16.2% from 15.2%.

-Overall demand remained favourable for its Machining Solution and Mining units, while the Materials Technology and Construction areas remained challenging.

-The SMT unit saw a drop in order intake of 9% on the year to SEK4.01 billion.

-European demand weakened slightly while North and South America remained strong.

-Asian demand stayed strong but with significant variations between segments.

-Shares closed Wednesday at SEK86.85.

-Write to Anna Molin at [e-mail]; Twitter: @DowJonesNordics

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