Sandvik AB has announced its Q4 2020 results with positive results for Sandvik Mining & Rock Technology. Stefan Widing, President and CEO said: “A record order intake was noted for Sandvik Mining and Rock Technology, increasing by 15% year on year, with a continued strong momentum in equipment and improved performance in the aftermarket business. During the quarter, we announced the deal to acquire the market-leading safety solutions com-pany DSI Underground, which will become part of Sandvik Mining and Rock Solutions business area. DSI Underground’s consumables business adds stability to our earnings profile, strengthens Sandvik’s underground mining off ering and is an important step in our overall growth ambition.”
Looking at mining in more detail, total order intake increased organically by 15% from Q4 2019 to Q4 2020, with strong development for both equipment and aftermarket. The divsion said underlying sentiment remained robust and several significant orders were received during the period. Total equipment orders increased by 23%, reaching an all-time high, supported by overall robust sentiment and orders for underground mining equipment and automation. Aftermarket orders increased by 8% driven by parts & services. The impact of COVID-19 on production was only minor during the quarter, and both supply and distribution proceeded as planned.
All regions noted positive development, with Africa/Middle East noting a growth rate of 31% and Asia 9%, with both Europe and North America recording a low to mid-double digit rate. The aftermarket business accounted for 55% of revenues while the equipment business accounted for 45%.
Adjusted operating profit decreased, however, by 11% year on year for the quarter and by 14% for the full year (MSEK 8,602 to MSEK 7,389), mainly due to exchange rates. The adjusted operating margin increased slightly to 21.7% for the quarter, reaching an all-time high, supported by strong revenues and savings measures. For the full year it decreased slightly from 19.9% to 19.8%.