Sandvik has reported 25 per cent revenue growth in its interim report for the second quarter 2022, despite the wind-down of operations in Russia.
Order intake for the first half of 2022 was at SEK 28,740 million ($4,079 million), compared to SEK 21,816 million ($3,097 million) in the second quarter of 2021.
This demonstrates a total order intake growth of 22 at fixed exchange rates, of which 4 per cent was organic growth.
Total revenues amounted to SEK 27,050 million ($3,838 million), versus SEK 20,136 million ($2,857 million) in the first quarter of 2021.
Total revenues grew by 25 per cent at fixed exchange rates, of which organic growth was 6 per cent.
Adjusted EBITA amounted to SEK 5,141 million ($729,542), compared to SEK 4,192 ($595,055) in 2021. This corresponds to a margin of 19.0 per cent, compared to 20.8 per cent in 2021.
Items affecting comparability amounted to SEK -1.1 billion ($156,167 million).
According to Sandvik, this is mainly related to the wind-down in Russia.
“The pausing of the business in Russia, eventually followed by the decision to wind down, has naturally impacted the development,” Sandvik president and chief executive Stefan Widing commented in the report.
“Excluding Russia, both order intake and revenues grew organically by 10 per cent, the sixth consecutive quarter of double-digit organic growth,” he added.
Specifically, Sandvik Mining and Rock Solutions total revenues, at fixed exchange rates, grew by 39 per cent year on year. Of this, organic growth was 9 per cent, driven by load and haul and the aftermarket business.
Excluding Russia, organic order intake and revenue grew by 17 per cent and 15 per cent, respectively.
“Demand within Sandvik Rock Processing Solutions continued to be strong, both from mining and infrastructure customers,” Widing said.
“The impact from Russia however led to a flat year on year development in organic order intake.
“Excluding the impact from Russia, organic order intake was up high single digit, driven by strong momentum in the aftermarket business.
“Organic revenues were impacted both by Russia and the significant lock downs in China,” he added.