"Demand for Sandvik's products continued to improve in the second quarter. The Group's operating result improved to SEK 3.5 billion and the operating margin rose to 17%. Order intake remained strong in Asia and improved in other markets. Demand from the energy sector remained high and an increase was noted in the automotive, mining and process industries. Order intake exceeded invoiced sales by SEK 2.5 billion, resulting in a strengthening of the order books of both Sandvik Mining and Construction and Sandvik Materials Technology. Lower cost levels, combined with higher sales and production volumes, a favorable product mix and positive metal price effects are the main reasons for the improved result" says Sandvik's President and CEO Lars Pettersson.
"It is satisfying to note that the market situation continued to improve in the second quarter. The operating margin was roughly on par with the level reported in the second quarter of 2008, despite the fact that invoicing was about 20% lower. The improved result was primarily generated by enhanced internal efficiency combined with higher sales and production volumes. Cash flow developed favorably due to strong result and improved capital efficiency. Furthermore, both net debt and net debt to equity ratio were reduced during the quarter."