Agile through cycle – strong financial performance
Our decentralized business model drives accountability and speed in operating decisions close to customers. We have well-prepared contingency planning that enable quick responses to changing market conditions and a continuous work to improve cost structures and operational efficiency.
Combined this will help us achieve further improved through-cycle performance and in 2021 we had solid adjusted EBIT margin, excluding metal price effects, of 17.8%, above our trough margin target of 16.0%.
Some examples as to why Sandvik’s financial performance has and will improve:
- 3% annual productivity improvement (revenues / full-time employee) is an internal KPI introduced in 2016.
- More than 30 production units closed since 2015 with continuous review of the manufacturing footprint.
- Targeting improved management of net working capital, to reach ~25% of revenues long-term.
- Increased adoption of value-based pricing.
