Sandvik implements restructuring program to continue to strengthen operational efficiency

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Sandvik announces a new program of restructuring measures to strengthen operational efficiency and financial targets. The program includes consolidation of production units and optimizing the organization structure, aiming for annual savings of [financial figure].

STOCKHOLM, Jan. 25, 2024 /PRNewswire/ -- Sandvik is continuously looking at ways to strengthen operational efficiency and resilience and have now decided to implement a new program of restructuring measures, supporting the strategy and the financial targets of the Group.

The new measures include consolidation of productions units and optimizing the structure of the organization. The measures are group-wide and global.

The program will generate annual savings of about SEK 1.2 billion. The share of total annualized savings expected to be reached by end of 2024 and end of 2025 are approximately around 80% and 100%, respectively. Out of the planned savings initiatives, 85% are structural and 15% are volume related.

"We are always reviewing options to improve our operational efficiency and enhance the resilience of the company. Driving efficiency in various ways also becomes important in times of macro-economic uncertainty. These initiatives will make us more resilient as well as further improve our ability to capture the growth opportunities ahead," says Stefan Widing, President and CEO of Sandvik.

Costs related to the restructuring are expected to amount to SEK 2.4 billion, which will be reported as non-recurring costs and reported as items affecting comparability in EBITA in the first quarter 2024.

BSEK	SMM	SMR	SRP	Total
Costs	1.4	0.5	0.5	2.4
Savings	0.7	0.4	0.1	1.2

 

Of the total SEK 2.4 billion, approximately SEK 0.7 billion are non-cash items and the remaining SEK 1.7 billion mainly refers to redundancies of some 1,100 employees in total.

Stockholm, January 25, 2024
Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008

The following files are available for download:

https://mb.cision.com/Main/208/3915128/2561791.pdf

Sandvik implements restructuring program to continue strengthen operational efficiency

 

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SOURCE Sandvik

FAQ

What is Sandvik's new restructuring program about?

Sandvik has announced a new program of restructuring measures to strengthen operational efficiency and financial targets.

What are the specific measures included in the program?

The measures include consolidation of production units and optimizing the structure of the organization.

What are the expected annual savings from the program?

The program is expected to generate annual savings of [financial figure].

How will the restructuring measures impact Sandvik's operations?

The measures are aimed at strengthening operational efficiency and resilience, supporting the strategy and financial targets of the Group.

Where will the restructuring measures be implemented?

The measures are group-wide and global, indicating a widespread impact across Sandvik's operations.

What is Sandvik's ticker symbol?

The ticker symbol for Sandvik is 'SDVKY'.