By Katarina Gustafsson 
 

STOCKHOLM--Swedish engineering group Sandvik AB (SAND.SK) Tuesday posted a fourth-quarter net profit that was slightly lower than a year ago and raised its dividend, saying the global business climate was weak at the end of 2012.

 
   MAIN FACTS: 

-Sandvik made a net profit of SEK728 million ($113.3 million) for the last three months of 2012, compared with a net profit of SEK731 million for the same period 2011.

-Revenue amounted to SEK24.33 billion, down from SEK25.10 billion a year ago and higher than the SEK23.73 billion that was the average forecast in a Dow Jones Newswires/Factset survey of 12 analysts.

-Ebit was SEK2.13 billion, compared with SEK1.65 billion a year ago.

-Sandvik said it reduced its workforce by 500 people during the quarter, adding that overall demand was largely on par with the third quarter.

-Production rates were further reduced to align inventory levels with the weaker demand which adversely impacted operating profit, but contributed significantly to a strong cash flow.

-Changed exchange rates had no effect on earnings, while changed metal prices had a negative impact SEK65 million.

-Results were hit by around SEK920 million in non-recurring items.

-Order intake was SEK21.07 billion, compared with SEK23.99 billion a year earlier.

-Sandvik's board of directors proposes a dividend of SEK3.50 per share, up from SEK3.25 per share a year ago.

-Shares Monday closed at SEK106.10.

-Write to Katarina Gustafsson at katarina.gustafsson@dowjones.com; Twitter: @DowJonesNordics

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