By Christina Zander
STOCKHOLM--Swedish engineering company Sandvik AB (SAND.SK) said
Friday that second-quarter profit was lifted by currency gains and
its group-wide cost saving program.
Sandvik, which makes tools for customers in the mining,
construction and energy sectors, said net profit in the three
months ended June 30 was 1.72 billion Swedish kronor ($200
million), up from SEK1.54 billion in the same period last year.
Analysts polled by FactSet expected SEK1.78 billion.
In the last few years, Sandvik's profitability has been hit by
low demand in the mining sector, and the company said that although
overall business activity in Europe remained largely stable in the
second quarter, it still saw a decline within its Sandvik Mining
and Sandvik Construction businesses. This was in contrast to North
America, where these business areas were relatively stronger.
Demand in Asia declined for all business areas except Sandvik
Venture, the company said. Order intake during the second quarter
was SEK22.74 billion, up from SEK21.19 billion a year ago.
Revenue in the quarter was SEK23.40 billion, up from SEK22.05
billion. Operating profit was SEK2.90 billion, up from SEK2.56
billion.
Shares closed at SEK93.95 Thursday.
-Write to Christina Zander at christina.zander@wsj.com
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