Sandvik posted a 19.9pc decline in revenues to SEK20.1bn ($2.3bn) in Q3 2020, compared to the same quarter a year ago. In this period, the company posted an operating profit of SEK3.5bn with an order intake of SEK19.9bn. Revenues declined by 16.5pc to SEK64bn for the first nine months of 2020, compared to 76.7bn in the prior year. Operating profits fell by 38.9pc to 7.7bn in Jan-Sep against the same period in 2019. Order books comprised of 37.7pc from the Machining division, 47.4pc from Mining and Rock Technology (SMRT), 15pc from Materials Technology (SMT).
Sandvik recently announced the internal separation of SMT, with shares of the latter to be listed separately. The parent company has set up a new business area called Sandvik Rock Processing Solutions (SRP) with a target date of January 1, 2021. The division is presently part of the SMRT division but will focus on crushing and screening processes. SRP already is operating independently with its own sourcing, manufacturing and aftermarket access. The MRT division saw sales of about SEK7.4bn in 2019 with an operating profit of 15.9pc and approximately 2,000 employees.
In October, Sandvik further aligned its divisions and signed an agreement to sell its Exploration division, previously within SMRT, to Drillman, part of the Australian M Group. Drillman works in mineral exploration and gas drilling sector. Neither party disclosed the purchase price of the unit which is expected to meet regulatory approvals in Q4 2020. The Exploration unit contributed SEK450mn in 2019.
Sweden-based Sandvik is involved in metal-cutting, mining construction equipment, additives, tool recycling, furnace products, and production of specialty alloys organized under the divisions of Machining Solutions, MRT and SMT. The firm employs about 40,000 workers.