Report on the first quarter 2009
"The exceptionally weak market position that prevailed at the end of 2008 continued during the first quarter of 2009. Order intake declined in price and volume by 39% compared with the corresponding quarter in the preceding year, including cancellations amounting to approximately SEK 900 M, relating mainly to mining equipment. Order intake levelled out on a low level. Invoiced sales fell in price and volume by 25% and totaled slightly more than SEK 19 billion."
"A reduction in inventory levels in all business areas was achieved by the rate of production being lower than invoiced sales. There was a significant decrease in operating profit as a result of a sharp drop in sales and production volumes."
"The weak demand means that we continue to take measures that gradually result in lower cost levels. Since the downturn began, we have reduced the workforce by more than 5,000 people. Our collective activities aimed at rapidly adjusting the rate of production and inventory levels and prioritizing cash flow already started to yield results in this quarter," says Sandvik's President and CEO Lars Pettersson.