Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SANDVIK AB. We currently have 7 research reports from 1 professional analysts.
|28Feb17 07:00||GNW||Sandal plc : Half-yearly report|
|16Feb17 07:00||GNW||Sandal plc : Change of Adviser|
|26Jan17 12:20||GNW||Sandal plc : Issue of Equity|
|25Nov16 14:46||GNW||Sandal plc : Result of AGM|
|25Nov16 07:00||GNW||Sandal plc : AGM Statement|
|28Oct16 14:41||GNW||Notice of AGM|
|18Oct16 12:26||GNW||Final Results|
Frequency of research reports
Research reports on
Surge in Mining demand and overall profitability
01 Feb 17
Sandvik reported strong figures in Q4 16, especially in the order intake and operating profitability. Order intake reached SEK22.0bn, corresponding to +8% organic growth due to improved demand in Mining and Machining Solutions. Revenues were flat in Q4 16 at SEK21.8bn. The operating margin reached 15% in Q4 16 versus 11.1% in Q4 15. Cash flow from operation was SEK4.4bn versus SEK3.4bn in Q4 15. EPS reached SEK1.68 in Q4 16 versus SEK-0.12 in Q4 15. The Board of Directors proposes a dividend of SEK2.75 (versus 2.50) per share. This would represent a yoy increase of 10%, while still safeguarding a strengthening of the balance sheet in the long term.
Efficiency plans begin to bear fruit
25 Oct 16
Main facts of the Q3 16 release: The order intake was flat yoy at SEK19.7bn, confirming the stabilisation of the business. Notably, order intake excluding major orders also remained stable. Revenue decreased 5% organically, and corresponded more or less to the overall performance in each division. Despite this decrease in revenue, the company managed to deliver a 13.3% operating margin (versus 11.2% in Q3 15), the improvement resulted directly from efficiencies and 0.4% from exchange rates. As a result, the EPS grew 28% yoy to SEK1.29 versus SEK1.01, and the cash flow from operations increased by 15% to SEK4,527m (versus SEK3,953m).
Improvement in Mining coupled with resilient margins
19 Jul 16
Sandvik reported its Q2 16 figures. Main facts: > Order intake reached SEK19,869m, a 4% decline yoy at CER (-9% in reported figures), including -8% for Materials technology, -2% for Mining and stable demand for Machining Solutions. > Q2 16 revenue was SEK20,321m, also showing a 4% decline at CER, mainly resulting from a 6% decline in Materials Solutions amid the challenging market environment due to increased competition and price pressure, as companies active in the tubular area sought to replace lost volumes in the oil and gas industry with volumes in adjacent segments. > The adj. EBIT was SEK2,705m, corresponding to 13.3% margin, stable yoy (13.4% in Q2 15). > The operating cash flow was SEK2,050m, below last year (SEK2,766m) but at a satisfactory level.
Margins stand firm despite weak demand and FX
26 Apr 16
Main facts Q1 16: Orders were 7% lower yoy at SEK20,299m (vs SEK22,574m in Q1 15) with Machining Solutions at -6%, Mining at -8%, Materials Technology at -6%, Construction at -9% and Sandvik Venture at -13%. Q1 16 revenue also decreased 7% yoy led by Materials (-13% yoy), Mining (-10%) while Solutions posted an 8% decrease. However, the gross margin reached 38.6% this quarter vs 33.4% in Q1 15 and the adj. operating profit was SEK2,413m, a 19% yoy decline and corresponding to 12.2% versus 13.6% last year. The cash flow from operations reached SEK1,602m, -40% versus last year, leading to a net debt of SEK27.2bn (versus SEK30.4bn last year).
More pain ahead
03 Feb 16
Main facts of Q415 results: Order intake was SEK19.5bn below market expectations, revenue reached SEK20.9bn and adj. operating profit was at SEK2.3bn roughly in line with consensus. Sandvik reported that demand in China and in US is declining, and the energy market is still challenging with spillover effects in the engineering segment. SEK1.4b non-recurring cost booked mostly for Machining Solutions and Machining Technology: SEK250m for the supply chain optimization and SEK220m cost in SMS, and SEK1bn impairment mainly in the Chinese market. Cash flow was fairly strong in Q415 (+SEK3.4bn) driven by a decrease in working capital. Company targets to decrease its working capital, that has already started and seems efficient, and is also focusing on its Saving programme. During the conference call, the Q&A mainly focused on mining aftermarket momentum after weaker performance in Q415. Proposed dividend of SEK2.50 (vs. 3.50) below expectations (SEK3.0)
Weak demand translates progressively into margins
23 Oct 15
Sandvik reported Q315 results pointing to lower visibility and margin erosion. Due to the ongoing disposal process, the company has booked the mining systems activity as discontinued. Q315 order intake reached SEK 19726m, a -8% organic decrease with the decline across all geographies and divisions. By divisions, Machining Solutions orders decreased by 6% organically due to lower demand in the automotive segment in Asia, while low oil prices negatively impacted demand for Materials Technology (-12 %yoy). Mining sector demand decreased by 3% organically as equipment remained largely stable coupled with a slight softening in customer activity for consumables and rock tools in the aftermarket business. The construction segment decreased by 6% yoy while Sandvik Ventures orders decreased by 21%. Sales decreased by 6% yoy to SEK 20742m, while the operating margin reached 11.2%, 70 bp lower than last year (11.9%), led by Sandvik Materials (operating margin fall from 12.9% to 1.5%) due to manufacturing under-utilization and price pressure, while the operating margin improved in Mining (continued operations) from 12.5% to 14.8%. This led to a yoy decrease in EPS for Q315 at SEK 1.01 versus 1.19 last year. However, cash-flow generation was strong at SEK3953 (vs. 3538m in Q314) reflecting the focus on WC management.
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017