Report on the third quarter 2008
"Demand for Sandvik's products remained favorable in several markets
and in the majority of segments in the third quarter. Order intake
increased in price and volume by 5% and invoiced sales rose by 7%,
however, adjusted for metal price effects and major project orders,
order intake increased by about 15% and invoiced sales by approximately
11%. Operating profit amounted to SEK 3.6 billion and was positively
impacted by such factors as currency effects, but was negatively
affected by declining metal prices. The operating margin amounted to
16.0%," said Sandvik's President and CEO Lars Pettersson.
"In the latter part of the quarter, uncertainty in the financial markets
influenced the business climate and a weaker demand in certain segments
was noted. Some customers have indicated that there will be
production cuts and project deferrals, which means that we are taking
measures in order to adjust costs and production capacity."