Some examples as to why Sandvik’s financial performance has and will improve.
- In Sandvik Mining and Rock Technology flexibility has increased due to higher share of outsourced product assembly, to currently about 40% from about 25% at the previous peak in the mining industry.
- 3% annual productivity improvement (revenues / full time employee) is an internal KPI introduced in 2016.
- 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.
- Announced 1.7bn SEK savings program in Q2 2019 including a personnel reduction of about 3,000.
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