Sweden’s Sandvik on Monday announced third-quarter order intake that exceeded market expectations and said it plans to list its specialty steels business on Nasdaq Stockholm next year.
The maker of metal cutting tools and mining gear has been helped by strong demand in the mining and infrastructure segments, while supply chain bottlenecks and shortages of components remained a challenge.
Demand from the auto industry in China slowed somewhat during the quarter as the global semiconductor shortage continued to put pressure on the sector.
“We think it will improve gradually, but I don’t think we will see a significant improvement in the fourth quarter,” Managing Director Stefan Widing said at a press conference.
Sandvik, considered a good indicator of industrial demand given its large customer base, said like-for-like order intake rose 21% to SEK 26.29 billion ($ 3.04 billion) , helped by a sharp increase in its mining unit, exceeding analysts’ expectations. of 25.27 billion.
After rising around 5% this year at Friday’s close, shares of the Swedish engineering group – one of the first large Nordic industrial companies to release third-quarter results – were up 2.2% late morning.
Sandvik confirmed earlier on Monday that it plans to list its Materials Technology (SMT) business separately on Nasdaq Stockholm and said it is aiming for the second or third quarter of 2022.
The SMT business, which manufactures seamless tubes and various steel strip products, is the original core of the 159-year-old Sandvik.
Sandvik, which competes with Epiroc and Kennametal, said its adjusted operating profit reached SEK 4.37 billion, down from SEK 3.49 billion a year earlier, above an average forecast of 4.30 billion. in a Refinitiv poll.
The mining sector accounts for almost 40% of Sandvik’s sales, while the engineering and automotive industries account for about a third.
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