Sandvik Ab Stock Price, News & Analysis

Sandvik has entered an agreement to acquire Cambrio, a US-based CAD/CAM software provider, as part of its strategy to expand in advanced manufacturing. This acquisition will enhance Sandvik's offerings in manufacturing automation and strengthen its position in the CAM market. Cambrio reported SEK 628 million (USD 68 million) in revenue in 2020, with a slightly dilutive EBIT margin. The transaction is expected to close in the second half of 2021, subject to regulatory approvals.

Sandvik has achieved a record order intake of approximately SEK 140 million for battery-electric mining vehicles (BEVs) in June 2021, marking its highest monthly total. The orders include seven Sandvik Z50 50-ton underground haul trucks and two Sandvik LH518B 18-ton loaders from Canadian mining customers. This surge follows successful trials that demonstrated the performance capabilities of Sandvik's BEVs. President Henrik Ager expressed satisfaction with the increasing customer interest, highlighting a commitment to sustainable mining solutions.

Sandvik has announced its acquisition of South African company Kwatani, a key supplier of screens and feeders for the mining sector. This strategic move aims to enhance Sandvik's position in rock processing and expand its equipment range, particularly in Africa. Kwatani, which generated approximately 175 million SEK in revenue in 2020, will be integrated into Sandvik Rock Processing Solutions. The deal, expected to close in Q4 2021, aims to bolster Sandvik's capabilities in comminution while having a neutral initial impact on Sandvik's earnings per share.

Sandvik AB held its Annual General Meeting on April 27, 2021, via postal voting due to COVID-19. The meeting adopted the 2020 financial accounts and approved a dividend of SEK 6.50 per share, with payments starting May 4, 2021. New member Andreas Nordbrandt was elected to the Board, while Johan Molin was re-elected as Chairman. The company also initiated a long-term incentive program for 350 executives, potentially costing up to SEK 346 million. PricewaterhouseCoopers AB was re-elected as auditor. Amendments to the Articles of Association were approved, allowing postal voting.

Sandvik reported a strong performance for Q1 2021, with order intake reaching 25,847 million SEK, a rise from 25,356 million SEK in the previous year. The company experienced organic growth of 12.2%, while revenues stood at 21,691 million SEK, down from 23,620 million SEK. Operating profit increased to 4,256 million SEK with a margin of 19.6%. Earnings per share rose to 2.53 SEK from 1.46 SEK.

Sandvik will release its first quarter results on April 20, 2021, at approximately 11.30 CEST. A combined webcast and conference call for investors, analysts, and financial media will follow at 13.00 CEST, featuring President and CEO Stefan Widing and CFO Tomas Eliasson. The presentation can be streamed live on the company's website. Dial-in details are provided for participants in Sweden, the UK, and the US. Presentation slides will be available on the website around 12.00 CEST.

The Annual General Meeting (AGM) of Sandvik Aktiebolag will be held on April 27, 2021, allowing shareholders to participate solely through postal voting due to the Covid-19 pandemic. Shareholders must be recorded in the share register by April 19, 2021, to vote. The meeting's agenda includes the election of board members, approval of a dividend of SEK 6.50 per share, and a long-term incentive program for 2021. The proposed record day for the dividend is April 29, 2021, with payment expected on May 4, 2021.

Sandvik announced the establishment of a new business area, Sandvik Rock Processing Solutions (SRP), effective January 1, 2021. This division incorporates the previous Crushing and Screening segment from Sandvik Mining and Rock Technology, now renamed Sandvik Mining and Rock Solutions (SMR). The 2020 financial results show mixed performance; SMR achieved a total revenue of 33,572 million with a 1% organic growth in order intake, while SRP reported revenues of 6,459 million but faced a -11% decline in order intake.