By Christina Zander
STOCKHOLM--Swedish engineering company Sandvik (SAND.SK) Monday
reported a lower net profit for its third quarter than in the same
period last year as administrative and selling expenses increased,
partly due to exchange rate changes and acquisitions.
The company also warned the recent fall in price of nickel is
expected to adversely affect earnings in the fourth quarter by
close to SEK50 million if the conditions noted in October
persist.
Net profit for the July to September period was 1.46 billion
Swedish krona ($0.2 billion), down from SEK1.63 billion the same
period last year.
Demand from mining customers for equipment, rock tools, services
and spare parts was stable compared with the preceding quarter,
while order intake declined for mining systems due to normal
fluctuations in orders, the company said.
"Activity levels in the aerospace industry and the oil and gas
sector remained high, while the mining and construction industries
were stable at a low level," the company said.
Sandvik said overall business conditions remained relatively
unchanged, compared with the second quarter, and that demand
remained favorable in North America, improved in Africa, but
deteriorated in Europe.
Sales increased to SEK22.59 billion in the third quarter, up
from SEK20.42 billion last year.
Operating profit fell to SEK2.46 billion, from SEK2.53 billion
in the same period last year.
Shares closed at SEK80.85 Friday.
Write to Christina Zander at christina.zander@wsj.com
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