Welcome to our dedicated page for Sandvik Ab news (Ticker: SDVKY), a resource for investors and traders seeking the latest updates and insights on Sandvik Ab stock.
Sandvik AB (SDVKY) generates frequent news through its activities in Mining, Rock Processing, Machining and Intelligent Manufacturing. Company announcements cover topics such as major underground mining equipment orders, acquisitions, restructuring initiatives and capital markets communications. This news page aggregates those updates so readers can follow how Sandvik’s business areas develop over time.
A significant portion of Sandvik’s news flow relates to its Mining business area. The company reports large orders for underground mining equipment, including loaders, trucks, drills, drill rigs and rock bolters, as well as digital monitoring solutions like Remote Monitoring Service. Recent releases describe contracts with mining contractors and mine operators in Botswana, Mexico and Mongolia, highlighting Sandvik’s role as a supplier of equipment and digital services for underground mines.
Sandvik also issues news about its strategic acquisitions. Examples include the completed acquisition of Osa Demolition Equipment S.r.l., an Italy-based manufacturer of demolition tools and hydraulic hammers, which becomes a business unit within the Attachment Tools division in Rock Processing, and the acquisition of Verisurf Software Inc., a US-based 3D metrology software solutions provider that operates as a separate business unit in Machining and Intelligent Manufacturing.
Other regular news items include interim reports with financial results, invitations to presentations of quarterly reports, and information from events such as the Capital Markets Day themed "Advancing to 2030". These releases outline Sandvik’s transformation, long-term financial targets and focus on digitalization, automation and electrification. Investors, analysts and others interested in SDVKY can use this news page to review company announcements and follow developments across Sandvik’s business areas.
Sandvik has finalized its acquisition of Gerling GmbH, a precision tube engineering firm based in Germany, specializing in the hydrogen market. This acquisition includes innovative solutions for high-pressure control technology used in hydrogen refueling stations. In 2020, Gerling reported revenues of approximately SEK 90 million and a neutral EBIT margin with Sandvik Materials Technology. Gerling will operate under Sandvik's Tube division, further enhancing Sandvik's capabilities in the fast-developing hydrogen sector.
The Nomination Committee of Sandvik AB has proposed the re-election of Board members including Jennifer Allerton, Claes Boustedt, and Johan Molin, who is also suggested to continue as Chairman. This decision is a part of the preparations for the Annual General Meeting scheduled for April 27, 2022. The committee includes representatives from major stakeholders like AB Industrivärden and Swedbank Robur Funds. Further proposals will be disclosed in the official meeting notice.
Sandvik announced plans to formally propose the distribution and listing of its business area, Sandvik Materials Technology (SMT), at a shareholder meeting, aiming for a Nasdaq Stockholm Exchange listing in Q2 or Q3 2022, pending approval. Andreas Nordbrandt was appointed Chairman, with Claes Boustedt and Karl Åberg as board members. Additionally, Kerstin Konradsson has been appointed to SMT's Board, bringing extensive experience from the metals industry. More board members will be appointed later to ensure a diverse composition.
Sandvik, in its Fourth Quarter 2021 report, noted a strong order intake of SEK 30,902 million, with organic growth of 23%. Total revenue grew to SEK 29,128 million, representing a 14% organic growth rate. The adjusted EBITA reached SEK 5,354 million, with a margin of 18.4%. Net profit for the period was SEK 3,870 million. The company proposed a dividend of 4.75 SEK per share. Despite strong overall performance, EBITA margin decreased from 20.5% in Q4 2020 to 18.4%.
Sandvik is set to publish its fourth quarter results on January 20, 2022, at approximately 08:00 AM CET. A combined webcast and conference call will follow at 10:00 AM CET, featuring presentations by Stefan Widing, President and CEO, and Cecilia Felton, acting CFO. Investors can access the presentation live on Sandvik's website, with additional materials available from 09:30 AM CET.
Sandvik Mining and Rock Solutions has secured a substantial order valued at approximately SEK 400 million from the Chilean mining company Codelco for its AutoMine® load and haul automation system. This project will span from 2022 to 2027 and includes the delivery of Toro™ TH663i trucks and Sandvik LH514 loaders. During the first two years, Codelco will receive initial equipment, followed by additional deliveries in subsequent years. This order highlights the growing demand for automation solutions in mining.
Sandvik has acquired US-based Dimensional Control Systems (DCS), a leader in dimensional quality management software. This strategic acquisition aims to enhance Sandvik's digital manufacturing capabilities, particularly in industrial metrology. DCS's offerings include CAD simulation tools that help reduce scrap and improve quality for customers across various industries, including automotive and aerospace. In 2020, DCS reported revenues of approximately SEK 92 million (USD 10 million), with a growth rate of about 10%. The deal is expected to have a neutral impact on Sandvik's earnings per share initially.
Sandvik Mining and Rock Solutions has secured a contract in the EMEA region valued at approximately SEK 1 billion for the delivery of tunnelling equipment, roadheaders, and underground drill rigs. This order, booked in Q4 2021, will see equipment deliveries scheduled from Q4 2022 to Q1 2024.
Sandvik has successfully acquired 100% of GWS Tool Intermediate Holdings LLC, a US-based manufacturer of round tools focusing on engineering and aerospace. The acquisition, valued at SEK 875 million in projected 2021 revenues, is expected to have a neutral impact on Sandvik's EBITA margin and EPS initially. GWS will operate within Sandvik Manufacturing and Machining Solutions division, enhancing Sandvik's portfolio in the fast-growing round tools market.
Sandvik has accelerated its acquisition strategy in 2021, completing 13 acquisitions, including the notable acquisition of Deswik. For Q4, the company anticipates transaction costs of approximately SEK 180 million and PPA amortization of around SEK 260 million. Specific segments report SEK 105 million in transaction costs and SEK 170 million in amortization for Manufacturing and Machining Solutions, while Mining and Rock Solutions will incur SEK 50 million in transaction costs related to Deswik. Overall, the acquisitions span various sectors, indicating a robust growth strategy.