Swedish engineering company Sandvik reported Monday a revenue increase of 23% (up 13% organically) to SEK24,826m in the third quarter – as orders grew due to robust demand.
The business also said order intake increased 32% on a reported basis and 21% organically to SEK26,292m (£2.2m), compared with the same period a year earlier.
President and chief executive Stefan Widing said organic order intake is now well above 2019.
“The volume uplift combined with good cost management resulted in solid profitability, and the adjusted EBITA margin improved to 19.1% (17.7%). The adjusted EBIT margin was 17.6% (17.3%)," he said. Adjusted EBITA increased 33% to SEK4,731m.
“I am also pleased with the execution of our M&A (mergers and acquisitions) strategy that resulted in seven successfully completed acquisitions during and after the quarter. With these additions, we are taking important steps in the digital shift and our shift to growth strategy,” Widing added.
Widling said the business also continued to see an accelerated interest in its automation solutions and battery electric mining vehicles (BEVs).
Sandvik Manufacturing and Machining Solutions
He also highlighted that Sandvik Rock Processing Solutions had a solid performance, despite continued supply chain and logistics issues. “Organic order intake growth was 26%, driven by strong demand in the aftermarket, while revenues grew by 12%,” he said.
Organic order intake and revenues in Sandvik Manufacturing and Machining Solutions grew by 16% and 18%, respectively, the company results showed.
While the impact of component shortages in global automotive production was noted in the business, the underlying demand was still solid, Sandvik said.
“In the quarter, we acquired the majority stake in the Chinese premium round tools company Chuzhou Yongpu. We also completed the acquisition of CNC Software, creators of the world-class brand Mastercam. Combined with our existing offerings and previously announced acquisitions, this will make Sandvik a leader in the overall CAM market,” Widling said.
“The successful M&A execution within Sandvik Manufacturing Solutions (SMF), resulted in an updated 2025 target for SMF to SEK6bn in sales with an EBITA margin of at least 20%,” he added.
Net debt increased year-on-year to SEK17.9bn (3.1) resulting in a net debt to equity ratio of 0.25 (0.05).
Sandvik shares were little changed at SEK212.70 in afternoon trading.