Swedish metal-cutting tools and mining equipment maker Sandvik reported second-quarter operating earnings above expectations on Wednesday and said group order intake grew.
Adjusted operating profit rose to 6.11 billion crowns ($596 million) from a year-earlier 4.79 billion. Analysts polled by Refinitiv had on average estimated a 5.84 billion crown profit.
Sandvik said in a statement demand from the mining sector remained robust in the quarter while demand within infrastructure was soft in all major regions due to weaker macroeconomic conditions.
Demand from the aerospace sector remained strong as post-pandemic activity and investments accelerated. Sales volumes to the general engineering and energy sectors however eased.
“Of the major markets, Europe saw the strongest development, and North America was stable, while Asia was down year over year impacted by soft demand in China post the re-opening,” the company said.
Group organic order intake excluding currency effects was 3%. A 16% fall in organic order intake at the Rock Processing Solutions division weighed.
“Demand within Sandvik Rock Processing Solutions was mixed. While a positive sentiment was noted from mining customers, slower activity in infrastructure continued in the second quarter,” it said.
Sandvik’s shares were down 2% at 1009 GMT.
($1 = 10.2460 Swedish crowns)
(By Anna Ringstrom; Editing by Essi Lehto and Louise Breusch Rasmussen)
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