Sandvik annual revenues jump 15%

Swedish engineering group Sandvik has reported a 15% increase in revenues, buoyed by a string of acquisitions.

Among the 14 acquisitions are Australian mine planning software company Deswik, Ohio-based CAD software company Cambrio, Florida-based machine cutting company GWS Tool Group, Oregon-based industrial automation company DWFritz Automation, and China-based round tool company Chuzhou Yungpu Carbide Tools.

Sandvik posted revenues of 99.11 billion Swedish crowns, or US$10.49 billion, up from SEK 86.41 billion in 2020. Order intakes amounted to SEK 108.89 billion in 2021, an increase from 2020’s SEK 86.29 billion in 2020.

Profit amounted to SEK 14.46 billion, an increase from 2020’s 8.74 billion, with the EBITA margin increasing to 19.1%. In 2020, Sandvik’s margin was 17.2%.

Sandvik’s net working capital increased by SEK 3.73 billion, while cash flow decreased to SEK 13.18 billion.

The Mining and Rock Solutions division saw orders increase from SEK 34.38 billion in 2020 to SEK 47.46 billion in 2020, with revenues rising to SEK 41.41 billion from SEK 33.47 billion in 2020.

Future plans for growth in this sector are to expand market share in surface drilling, offer more services using data-driven productivity, and focus on automation, electrification, and complementary technology via mergers and acquisitions, the company said.

For the rock processing solution division, order intakes amounted to SEK 8.52 billion, up from SEK 6.57 billion in 2020. Revenues grew from SEK 6.46 billion in 2020 to SEK 7.61 billion in 2021.

Mining accounted for 47% of the division’s customers, with European customers leading demand.

Sandvik plans to grow business in this sector by optimising its sales channel, and pursuing mergers and acquisitions in automation, eco-efficient rock processing, digitisation, and electrification.

At the manufacturing and machining solutions division, orders increased from SEK 32.68 billion in 2020 to SEK 37.68 billion in 2021, with revenues jumping from SEK 32.48 billion to SEK 36.68 billion.

Mining accounted for only 1% of the division’s revenues.

At the Sandvik Materials Technology division, which produces advanced stainless steel and special alloys, order intakes increased from SEK 11.91 billion in 2020 to SEK 15.23 billion this year.

Revenues fell slightly from SEK 13.59 billion in 2020 to SEK 13.40 billion, due to challenges in the aerospace and oil and gas market.

Sandvik has decided to apply for a separate listing on Nasdaq Stockholm for this division. The decision is subject to a formal board proposal at a general meeting and shareholder approval. Sandvik is targeting the March or June quarter this year for the listing.

The company plans to achieve net-zero carbon emissions by 2050 at the latest, chief executive Stefan Widing said.

Sandvik decreased emissions 16.4% in 2021, and joined the Science Based Targets Initiative in December.