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 signed an agreement to acquire CNC Software Inc., the creator of Mastercam, a leading CAD/CAM software solution. This acquisition enhances Sandvik's digital manufacturing strategy and positions it as a leader in the CAM market with over 270,000 Mastercam licenses. CNC Software, founded in 1983, reported 2020 revenues of USD 60 million and a strong EBIT margin of 25-30%. While the acquisition is expected to have a slightly negative impact on Sandvik's earnings per share initially, it promises to boost productivity in manufacturing through enhanced tooling and automation solutions.
Sandvik has raised its revenue target for the Sandvik Manufacturing Solutions segment from SEK 4 billion to SEK 6 billion by 2025. This revision follows the announced acquisitions of Cambrio, DWFritz Automation, and CNC Software, which are expected to enhance organic growth. The EBITA margin target for the segment has also been set at 20% by 2025. Previously, this segment's revenue was approximately SEK 800 million in 2020, indicating significant growth plans. The overall target growth for Sandvik remains at ≥ 5% through organic and acquisition strategies.
On August 20, 2021, Sandvik announced the completion of its acquisition of 67% of Chuzhou Yongpu Carbide Tools Co., Ltd, a China-based premium solid round tools company. This transaction allows Sandvik to expand its market presence, with revenues of approximately SEK 400 million for the prior twelve months. The acquisition has an initial neutral impact on earnings per share and is expected to enhance Sandvik's manufacturing capabilities. A call option for the remaining shares exists after three years.
On August 3, 2021, Sandvik announced the acquisition of DSI Underground, a leader in underground mining and tunneling solutions, which closed on July 7, 2021. This acquisition includes DSI's stake in the Rocbolt Technologies joint ventures across China, South Africa, Mongolia, and Australia. For 2020, DSI reported revenues of approximately EUR 516 million, with Rocbolt Technologies contributing an additional EUR 80 million. However, the acquisition is expected to dilute the EBIT margin for Sandvik Mining and Rock Solutions by up to 300 basis points in the latter half of 2021 and about 170 basis points in 2022.
Sandvik has agreed to acquire 67% of Chuzhou Yongpu Carbide Tools Co., Ltd, a premium solid round tools manufacturer based in China, with plans to purchase the remaining shares in three years. This acquisition aligns with Sandvik's strategy to enhance its market share in solid round tools and expand within the Asian market. Chuzhou Yongpu, generating approximately SEK 400 million in revenue, will continue to operate independently. The deal is expected to close in Q3 2021, with an initial neutral impact on Sandvik's earnings per share.
Sandvik Aktienbolag reported significant growth in its Second Quarter 2021 results. The order intake surged to 25,857 million SEK, showcasing a remarkable 43% organic growth. Revenues increased to 23,460 million SEK, reflecting a 22% organic growth. Operating profit soared to 4,754 million SEK with a margin of 20.3%. The profit for the period reached 3,514 million SEK, equating to earnings per share of 2.80 SEK. Furthermore, free operating cash flow improved to 3,088 million SEK.
Sandvik has signed a deal to acquire Polish manufacturer Fabryka Narzędzi FANAR S.A. to enhance its round tools offerings. The acquisition aims to strengthen Seco's product range, particularly in taps and solid threading applications, while expanding Sandvik's presence in the Polish market. In 2020, Fanar generated revenues of approximately SEK 175 million. The transaction is expected to close in Q4 2021, pending regulatory approvals. The purchase price remains undisclosed, with limited impact anticipated on Sandvik's earnings per share.
On July 12, 2021, Sandvik announced the acquisition of US-based DWFritz Automation, a leader in precision metrology and automation for advanced manufacturing. This strategic move aims to enhance Sandvik's capabilities in metrology and automation, allowing for improved quality and cost reduction across the value chain. DWFritz, with a revenue of approximately SEK 720 million (USD 78 million) in 2020 and over 2,000 systems installed globally, will strengthen Sandvik's position in high-speed, non-contact inspection technologies. The deal is expected to close in the second half of 2021, pending regulatory approvals.
Sandvik has appointed Christophe Sut as the new President of the Sandvik Manufacturing Solutions Business Area Segment and member of the Group Executive Management, effective January 1, 2022. Christophe Sut has previously served as Executive Vice President at ASSA ABLOY Global Solutions, focusing on creating digital offerings and recurring revenue streams. CEO Stefan Widing expressed confidence in Sut's leadership and experience to drive growth and add value to Sandvik's strategies moving forward.
Sandvik has successfully acquired DSI Underground, a leader in ground support products for underground mining and tunneling. The acquisition, valued at approximately EUR 943 million, is expected to slightly positively impact Sandvik's earnings per share. DSI Underground generated around EUR 516 million in revenues in 2020. The acquisition will lead to DSI Underground forming its own division within Sandvik Mining and Rock Solutions, bolstering Sandvik's market position in the sector.
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