Sandvik's third-quarter 2024 financial report: Order volume increased by 4%, securing a 1.9 billion yuan order!

A summary of key data for the third quarter of 2024

The order volume is 28.796 billion Swedish kronor

The order volume increased by 4% at a constant exchange rate

Quarterly revenue was 30.306 billion Swedish kronor

Quarterly revenue increased by 1% on a constant exchange rate basis

Adjusted earnings before interest, taxes, depreciation and amortization (EBITA) was 5.866 billion Swedish kronor

The adjusted EBITDA margin was 19.4%

Adjusted earnings before interest and taxes (EBIT) was 5.382 billion Swedish kronor

The adjusted EBIT margin was 17.8%

The adjusted pre-tax profit was 4.857 billion Swedish kronor

The profit for this period was 3.239 billion Swedish kronor

The adjusted profit for the current period was 3.688 billion Swedish kronor

Diluted earnings per share were 2.58 Swedish kronor

Adjusted earnings per share diluted at 2.94 Swedish kronor

Free operating cash flow was 6.762 billion Swedish kronor

Highlights of performance in each business area

Shanvik Mining and Rock Technology

Orders continue to grow

Driven by strong growth in the aftermarket, demand in the mining industry remained stable, with total orders increasing by 2%. At a constant exchange rate, the order volume increased by 7%, with an organic growth of 8%. Organic orders in South America, Africa and the Middle East grew most significantly, increasing by 36% and 12% respectively. Organic orders in the aftermarket increased by 11% year-on-year.

The harvest was 1.9 billion

This quarter, Sandvik Mining & Rock Technology received a large contract worth 1.9 billion Swedish kronor from BHP for the Jansen Potash project in Saskatchewan, Canada. Among them, approximately 500 million Swedish kronor of the order was completed in the third quarter. Sandvik has been cooperating with BHP Billiton for many years, providing it with a variety of underground mining equipment and more. The equipment ordered this time will be used in the second phase of the Jansen potash fertilizer project development. The Jansen potash project is expected to become the world's largest potash production mine, providing a rich source of potassium for the fertilizer industry and thus supporting global food production.

Acquire the robotics company UFR

In August, Sandvik announced the acquisition of UniversalField Robots (UFR), a rapidly growing Australian industrial robot company that mainly provides automated operation solutions for markets such as open-pit mining and underground mining. The addition of UFR will inject new impetus into Sandvik's continuous growth and provide key capabilities for developing a more outstanding portfolio of mining automation solutions.

New progress has been made in the research and development of electric equipment

This quarter, we have made new progress in the research and development of battery electric products. The most significant innovation is the development of a truck overhead line solution and the upgrade of battery modules, which has greatly increased battery capacity.

Sandvik rock treatment technology

The growth momentum of organic orders is encouraging

The demand for rock processing equipment in the mining industry remains stable, while the demand in the infrastructure industry has weakened due to the influence of the macro environment. During the reporting period, organic orders for equipment increased by 17%, among which orders from Africa and the Middle East saw the strongest growth, increasing by 30%.

We received a large order worth a total of 318 million yuan

This quarter, Sandvik Rock and Mine Technologies received two large orders, one from the mining industry and the other from the infrastructure industry, with a total value of 318 million Swedish kronor.

Sandvik manufacturing and processing solutions

The software business is showing strong momentum

Under a fixed exchange rate, the total order volume increased by 1%. Demand in the general engineering and automotive industries was generally weak, but the strong momentum of the software business led to a relatively good growth in organic orders.

Leading solutions are well-received by customers

Sandvik's series of manufacturing and processing solutions were showcased at the International Manufacturing Technology Show (IMTS2024) in Chicago, USA. The integrated solutions in the field of industrial measurement and the brand-new Vericut simulation solutions have aroused great interest from customers, and as a result, multiple transaction orders and new business opportunities have been obtained.