High-technology engineering group Sandvik (OMX: SAND) experienced stable demand for its products in Q2. Order intake is up year-on-year exceeding 25 billion SEK and higher invoiced sales and production volumes showed in improved earnings. Operating profit climbed to 3.6 billion, margin being 15.2%.
Tooling and Mining & Construction business segments had improving conditions in all markets where as Materials Technology had ”slightly declining” (11%) order intake from strong Q2 2010. Automotive, aerospace and mining industries demanded a lot of products but construction and consumer goods industries cooled off towards the end of the quarter. Activity remained very high in oil and gas area in the energy segment.
Sandvik said that demand from Japan returned to pre-disaster levels towards the end of the quarter. Financial tightening in China and economic uncertainty in Europe are the main causes of uncertainty going forward. Sandvik gained more than 2.5% of market value in today's session. More information is available via clicking here.
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