Sandvik order intake delights

Score one for the much maligned leadership, for Sandvik’s report is a good one. The engineering giant first quarter invoiced sales reach 24.8 billion SEK and order intake reaches its highest level ever at 28.9 billion. Operating profit is also up amounting to 3.8 billion. All of these are up in double digts. Overall margins are holding well and earnings per share improvement of 20% leads to 2.05 SEK haul.

The Mining segment, which had been in focus, had some pent-up demand result in a major surge in orders. This seems to validate the claims from the management last go around, that the decline in Q4 2011 was atttributable to timing in large orders. Machining Solutions segment orders also reach all time record. In Sandvik Materials Technology the picture is fuzzier. Business areas Construction and Venture performed stably.

Market development in North and South America is strong. The situation in Europe remains largely stable but Asia, with China in particular, is showing weakness and major fluctuations between segments. The new Sandvik organization is now in full swing. The share has jumped by 10% to reclaim 100 SEK level.