"The current level of tariffs is expected to have a limited effect on the margin, but it is difficult to fully predict the effect due to the complex circumstances," writes Sandvik in the quarterly report released on Wednesday. However, demand may decline if the trade war spills over more generally to the global economy, and then no one will be spared.
Do you have customers who are starting to hesitate?
Not so far. It can naturally change at any time, says Widing.
Already underway
With the current tariff levels, Sandvik will manage the situation. But Sandvik is preparing for the possibility that it may get worse. The Group has a significant amount of sales in the USA, including production, but the supply chains are still global.
So what we will probably do then is to balance this production, so that you produce more in the USA for the USA. And that is something that is already underway, says the Sandvik CEO.
If the tariffs become even higher?
Then you have to make an even harder regionalization, then it may become relevant.
Does not rule out powerful measures
Can it happen that production moves from Sweden to the USA?
It is something we constantly have to analyze based on the tariffs that exist. It is not possible to rule out that you have to take more powerful measures, says Stefan Widing.
The quarterly result was otherwise strong, according to the CEO. Most key figures went in the right direction, even if the profit was somewhat weaker than the analysts' assessment, according to Bloomberg's prognosis compilation. The share price falls by around 2 percent.
Olle Lindström/TT
Facts: Sandvik's results in figures
TT
The adjusted profit before tax increased to 4,966 million kronor for the first quarter of the year. This can be compared to the adjusted profit of 4,317 million kronor a year earlier.
The order intake amounted to 32.8 billion kronor, compared to 32 billion kronor a year earlier. Revenues increased to 29.3 billion kronor. This can be compared to last year's figures of 29 billion kronor.
Source: Sandvik
