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 AB reported strong performance in its third quarter 2021 with order intake soaring to SEK 26,292 million, reflecting a remarkable organic growth of 21%. Revenues also increased to SEK 24,826 million, with organic growth of 13%. Adjusted EBITA reached SEK 4,731 million, representing a margin of 19.1%. Profit after net financial items stood at SEK 4,437 million, driving earnings per share to SEK 3.12. Free operating cash flow was SEK 3,940 million, a slight decrease from the previous year.
The Sandvik Board of Directors has reaffirmed plans to distribute Sandvik Materials Technology (SMT) to shareholders and list SMT on the Nasdaq Stockholm Exchange. The targeted completion date for the listing is the second or third quarter of 2022, pending shareholder approval. Chairman Johan Molin stated that both Sandvik and SMT's independent growth potential justifies this move. A formal proposal for distribution will be made at a shareholders' meeting next year.
Sandvik has successfully completed the acquisition of US-based Cambrio, a leader in CAD/CAM software for various manufacturing sectors, including automotive and aerospace. In 2020, Cambrio generated approximately SEK 628 million (about 68 million USD) in revenue, although its EBIT margin was slightly dilutive to Sandvik's Manufacturing and Machining Solutions. This acquisition is expected to have a positive impact on Sandvik's earnings per share and will be included in its Design & Planning Automation division.
Sandvik has acquired Accuratech Group, a Swiss manufacturer specializing in medical wire forming and components. This strategic acquisition aligns with Sandvik Materials Technology's growth strategy and its intent to become a separately listed entity. Accuratech's capabilities are expected to enhance Sandvik's position in the medical sector, which is a defined area for growth. The 2020 revenues of Accuratech were around SEK 75 million, with an EBIT margin neutral to Sandvik. The purchase price remains undisclosed, and the immediate impact on Sandvik's earnings per share is projected to be neutral.
Sandvik will release its third quarter results on October 18, 2021, at approximately 11:30 PM CEST. Following the report, a webcast and conference call for investors, analysts, and media will occur at 1:00 PM CEST, presented by President and CEO Stefan Widing and CFO Tomas Eliasson. The presentation will be accessible on Sandvik's website. Dial-in options for the conference call include numbers for Sweden, the UK, and the US. Further details can be obtained from Vice President Investor Relations Louise Tjeder.
Sandvik has finalized its acquisition of DWFritz Automation, a prominent US-based provider of precision metrology and automation solutions. DWFritz recorded approximately SEK 720 million (around USD 78 million) in revenue for 2020, but its EBIT margin was slightly dilutive to Sandvik's existing operations. The acquisition is expected to have a neutral impact on Sandvik's earnings per share initially and will be integrated into the Metrology division under Sandvik Manufacturing and Machining Solutions.
Sandvik reports transaction costs of approximately SEK 180 million for Q3 2021 due to accelerated M&A activities, with eight total acquisitions this year. Of this, Sandvik Manufacturing and Machining Solutions accounts for SEK 160 million, while Sandvik Mining and Rock Solutions incurs SEK 20 million mainly from acquiring DSI Underground. The acquisitions will dilute SMR's EBIT margin by around 400 basis points in Q3 and 200 basis points in Q4 2021. These costs won't impact reported operating profit.
Sandvik has finalized its acquisition of CNC Software Inc., a top provider of CAD/CAM solutions, known for Mastercam, the industry's leading CAM brand. In 2020, CNC Software reported revenues of approximately USD 60 million with an EBIT margin of 25-30%, and about 60% of its revenue was recurring. This acquisition will enhance Sandvik's Design & Planning Automation division within its Manufacturing and Machining Solutions.
Sandvik projects that over half of its underground mining equipment sales will be electric by 2030, driven by increasing demand for sustainable solutions. The company highlights the advantages of electric equipment, including cost savings and an emission-free environment. Showcased at MINExpo International 2021, Sandvik launched new battery-electric products, including the TH550B truck, designed to enhance operational efficiency with innovations like battery-swapping technology. With plans to cover all underground applications by 2022, Sandvik solidifies its position as a leader in electric mining solutions.
Sandvik AB has established its Nomination Committee ahead of the 2022 Annual General Meeting scheduled for April 27, 2022. The committee comprises representatives from the four largest shareholders and the Chairman of the Board, Johan Molin. Key members include Fredrik Lundberg, Anna Magnusson, Marianne Nilsson, and Lars Pettersson. The committee will prepare proposals regarding board elections and auditor appointments. Shareholders can submit proposals to the committee's Secretary, Åsa Thunman, by January 14, 2022.