STOCKHOLM, April 22 (Reuters) - Swedish maker of metal-cutting tools and mining equipment Sandvik reported a larger-than-expected rise in first-quarter core profit on Wednesday, and said order intake
Industrial gear maker Sandvik's profit up more than expected in 'highly uncertain' geopolitical environment
Sandvik's First-Quarter Financial Performance and Market Outlook
Stronger Than Expected Profit and Order Intake
STOCKHOLM, April 22 (Reuters) - Swedish maker of metal-cutting tools and mining equipment Sandvik reported a larger-than-expected rise in first-quarter core profit on Wednesday, and said order intake for its cutting tools was higher in the first half of April compared to the first quarter.
CEO Statement on Geopolitical and Macro-Economic Uncertainty
• "The geopolitical and macro-environment continues to be highly uncertain," CEO Stefan Widing said in a statement
Industry Position and Market Dynamics
• Sandvik is regarded in the industry as a bellwether due to its broad customer base and relatively short lead times from order booking to delivery of its cutting tools
Key Financial Highlights
Operating Profit and Sales Growth
• January-March operating profit before amortisation and items affecting comparability, mainly previously announced restructuring costs, rose 6% to 6.14 billion crowns ($671 million) against a mean forecast of 5.97 billion in an LSEG poll of analysts
• Organic sales growth in Q1 was 15%
Order Intake Trends and Market Uncertainty
• "The daily order intake trend entails a higher degree of uncertainty than usual due to market dynamics related to the tungsten supply and demand," Sandvik said
Tungsten Market and Impact on Sandvik
Tungsten Price Surge and Supply Factors
• The price of tungsten, a critical industrial metal prized for its hardness, has soared, fuelled by tightening inventory, Chinese export controls and industrial demand
Sandvik's Tungsten Operations and Demand
• Sandvik, which has its own tungsten mine, has seen demand for its tungsten powder jump
Share Performance and Additional Information
Stock Movement
• Shares were broadly flat at 0957 GMT, up 30% year-to-date
Currency and Reporting Notes
($1 = 9.1512 Swedish crowns)
(Reporting by Greta Rosen Fondahn, editing by Anna Ringstrom)
