Sandvik 3Q Hit By One-Off Charge, Reduces Staff In Sweden

Sandvik AB (SAND.SK), the Swedish engineering company, Tuesday said net profit fell year-on-year in the third quarter, as the company was hit by an expected SEK1.16 billion goodwill write-down for its MedTech unit.

 
   MAIN FACTS: 

-During the quarter, sales and production volumes increased, primarily within Sandvik Tooling and Sandvik Mining and Construction.

-However, the trend for some of Sandvik Materials Technology's product groups weakened.

-3Q net proft was SEK626 million, down from SEK1.58 billion the same quarter last year and against expectations for SEK515 million.

-3Q revenue was SEK23.53 billion, up from SEK20.24 billion last year and against expectations for SEK22.61 billion.

-3Q operating profit (Ebit) was SEK1.67 billion, down from SEK2.53 billion last year and against expectations for SEK1.44 billion.

-3Q order intake was SEK24.83 billion, up from SEK21.52 billion last year.

-Changed exchange rates had a negative impact of 5% on order intake and invoiced sales respectively.

-In a separate announcement, Sandvik said it is reducing staff by 365 employees in Sweden.

-The reduction affects employees at SMT and Sandvik Mining and Construction in Sandviken, as well as employees at SMT in Hallstahammar.

-Monday shares in Sandvik closed at SEK90.15.

-By Sven Grundberg, Dow Jones Newswires; [phone]; [e-mail]