The performance of Sandvik Mining and Rock Technology continued to stand out in Sandvik Group’s June quarter results as orders for mechanised cutting and autonomous equipment helped revenues jump.
Order intake from Sandvik Mining and Rock Technology of SEK11.9 billon ($1.27 billion) represented a historically high level, slightly shading the SEK11.4 billion posted a year earlier. Revenues and operating profit, meanwhile, were 3% and 13% higher, year-on-year, at SEK11.8 billion and SEK2.1 billion, respectively.
This compared positively with lower year-on-year order intake from the Sandvik Machining Solutions and Sandvik Materials Technology divisions, which led to overall group order intake falling 5% and adjusted operating profit dropping 2% for the quarter.
While Sandvik noted the mining market remained stable during the quarter, it also said “somewhat protracted decision-making among customers” became apparent over the three months.
Orders for equipment remained at a high level, positively impacted primarily by the mechanical cutting and automation divisions, Sandvik said, while orders for underground mining equipment declined against high comparables from last year.
Aftermarket orders increased at a “mid-single-digit pace”, both for parts & service as well as for consumables, the company said, adding that the aftermarket business accounted for 62% of revenues with the equipment business accounting for 38%.