Sandvik's 4Q Profit Drops On One-Off Items

Despite stable demand, Swedish engineering company Sandvik AB (SAND.SK) Wednesday said it posted a decline in fourth-quarter profit due to restructuring charges, raw material and currency effects.

 
   MAIN FACTS: 

-Sandvik made a fourth-quarter net profit of SEK731 million ($107 million), compared with a profit of SEK2.1 billion a year earlier.

-The average forecast in a Dow Jones Newswires/Factset poll of nine analysts was for a profit of SEK1.5 billion.

-"The quarter's result and return were significantly impacted by one-off costs for impairments and restructuring measures in addition to the negative effects of changed metal prices and currency effects," the firm said.

-Demand was stable during the quarter, it said.

-One-off charges amounted to SEK1.6 billion.

-Sandvik had previously said remaining one-offs related to the roll out of its new strategy amounted to SEK1.3-1.6 billion, of which most would be in the fourth quarter.

-Revenue totaled SEK25.1 billion, up from SEK23.3 billion a year earlier and spot on expectations for SEK25.1 billion.

-EBIT was SEK1.6 billion, lower than SEK3.1 billion a year earlier.

-Adjusted for one-off charges, EBIT totaled SEK3.2 billion.

-Analysts had expected EBIT of SEK3.6 billion.

-Order intake at SEK23.99 billion, down from SEK26.31 billion.

-The firm's board of directors proposes a dividend of SEK3.25 per share, up from SEK3.00 per share a year earlier.

-Shares Tuesday closed at SEK100.50.

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