Swedish engineering group Sandvik reported a smaller than expected fall in first quarter core operating earnings on Monday as cost cuts helped partly offset a deep slump in its mining business which showed little sign of letting up.
Years of soft commodity prices have depressed demand for mining equipment as miners cut costs and shutter unprofitable sites, hitting sales for machinery makers such as Sandvik and fierce rival Atlas Copco.
Only last week U.S. Caterpillar, the world’s biggest maker of construction and mining gear, cut its 2016 revenue and earnings outlook, in part reflecting a continued slide in already hard-hit mining sales.