Sandvik Says Turnaround On Track As Profit Rises

Swedish engineering group Sandvik AB (SAND.SK) Friday said its strategy overhaul is on the right track as it posted a rise in first-quarter net profit, beating expectations, helped by high demand for the majority of its products.

 
   MAIN FACTS: 

-The company made a net profit of SEK2.50 billion ($370.7 million) for the first quarter of 2012, compared with a profit of SEK2.03 billion for the same period in 2011.

-The average forecast in a Dow Jones Newswires/Factset survey of 12 analysts was for net profit of SEK1.97 billion.

-Revenue amounted to SEK24.84 billion, up from SEK22.03 billion a year earlier and higher than the SEK24.01 billion analysts expected.

-Operating profit was SEK3.82 billion, compared with SEK3.27 billion and expectations for SEK3.33 billion.

-Order intake was SEK28.89 billion, up 13% on year measured at fixed exchange rates.

-Sandvik's CEO Olof Faxander said there is improvement potential for both its net working capital and cash flow.

-Faxander also said the market situation is largely stable in Europe and strong in North and South America while Asia shows a mixed picture.

-In particular, the Chinese market fluctuated significantly between various segments, Faxander said.

-Shares Thursday closed at SEK92.45.

-By Katarina Gustafsson, Dow Jones Newswires [phone]; [e-mail]