Sandvik is the first of the major engineering companies on the Stockholm stock exchange to report interim results. Despite tariffs, their own businesses have delivered stable results, according to Widing. For example, mining equipment has continued high demand, even in the USA.
Of course, it's natural that we see that there are customers who are naturally hesitant about larger investments due to the uncertainty that exists, says Widing to TT.
The direct impact of the tariffs has been fully handled, according to Widing. This is through price increases and rebalancing production. It's mainly about moving production in China to the USA and vice versa – so that you produce mainly for your local market.
If the tariff levels become even higher, will you act and how?
There are continuous moves in different directions. So it's completely impossible to act on the moves, without waiting for what becomes reality.
Mining operations
"Order intake increased by 10 percent organically and reached a record high level, while revenues increased by 3 percent", Widing writes in the interim report. Above all, it's about strong figures when it comes to the company's mining operations, where they now also reach a historically high level.
They also see a positive development linked to the aerospace industry and Stefan Widing notes that "the forecasts for the industry are very favorable for the next few years".
Will save one billion
During the period 2025 to 2030, the company will implement a savings program. It aims to provide a saving of approximately one billion on an annual basis at the end of the period and is limited to businesses within the area called machining.
It's an industry that grows structurally quite slowly. That means we need to continuously work with efficiency measures, says Widing.
A first part of the program was announced in May, with a reorganization and staff reduction of 350 employees. And more measures are to be expected.
This was just the first part of the program, which implies that we're not finished yet. But it's a global program and over a long period.
The company's operating profit landed at 4.55 billion kronor, somewhat worse than expected 5 billion, according to Bloomberg's compilation.
On the other hand, the order intake surprised positively, 32.2 billion kronor compared to expected 31 billion kronor.
