Sandvik 2Q Profit Down, Hit By Currency Effects

   By Jens Hansegard 
 

STOCKHOLM--Swedish engineering group Sandvik (SAND.SK) Friday reported a lower profit in its second quarter than in the same period last year as higher nickel prices were more than offset by negative currency effects.

Changed metal prices contributed positively to second-quarter earnings by SEK177 million, as nickel prices have increased significantly over the year, but currency exchange rates hit earnings by about 200 million.

The low level of demand in the mining and construction industries impacted earnings adversely, but was partly offset by stronger development in other customer segments such as energy, the company said.

Net profit for the second quarter fell to SEK1.53 billion from SEK1.86 billion in the same period last year.

Sales fell to SEK22.05 billion, down 4% from SEK23.04 billion last year.

Operating profit fell to SEK2.56 billion, down from SEK2.96 billion in the same period last year.

-Write to Jens Hansegard at [e-mail]

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