Report on the fourth quarter and full-year 2007
"Demand for Sandvik's products remained high in all markets during the fourth quarter. Invoicing increased in price and volume by 14%, amounting to nearly SEK 23 billion. Operating profit was charged with such items as expenses related to declining nickel prices and amounted to SEK 3.2 billion. The operating margin amounted to SEK 14.1%," says Sandvik's President and CEO Lars Pettersson.
"Accordingly, 2007 was another year of profitable growth for Sandvik. Order intake totaled SEK 92 billion and invoiced sales amounted to SEK 86 billion. Profit after financial items increased by 17% to SEK 13 billion. Sandvik's global positioning was strengthened through continued investments in research, development and marketing activities."
"The nickel price development will also have a bearing on Sandvik's earnings in 2008. At the end of 2007, the market price was approximately USD 26 000 per ton. If this price is maintained, all other factors being equal, this entails a negative earnings effect during the first six months of 2008 of about SEK 600 M, the majority of which will be charged to the first quarter."