Sandvik Materials Technology

Sandvik Materials Technology is a world-leading developer and manufacturer of high value-added products in advanced stainless steels, powder-based alloys and special alloys for the most demanding industries, as well as products for industrial heating. Order intake for the business area amounted to 16,272 million SEK (14,739), an increase of 12 percent at fixed exchange rates for comparable units. Revenue totaled 15,111 million SEK (13,618), up 13 percent at fixed exchange rates for comparable units. The operating margin was 9.2 percent (2.0) of revenues and the adjusted operating margin was 9.4 percent (5.3) of revenues. Market conditions were good for Sandvik Materials Technology. The demand for standardized tubular products and heating systems was strong, and several major orders were received in the energy sector. Sandvik Materials Technology continued its efficiency program in 2018 with strict cost controls and cost reductions, including layoffs that contributed to the improved results. Portfolio improvements also resulted in a better product mix in standardized tubular products and improved price management.

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Financial overview

MSEK

2016

2017

2018

1)	Operating profit adjusted for items affecting comparability of –450 million SEK in 2017 and –24 million SEK in 2018. In 2018, adjusted operating profit, excluding metal price effects totaling 255 million SEK, amounted to 1,161 million SEK (614). The adjusted underlying operating margin was 7.7 percent (4.5 for 2017 and 8.1 for 2016).
2)	Number of employees adjusted for items affecting comparability, due to internal reallocation.

Order intake

12,036

14,739

16,272

Revenue

12,931

13,618

15,111

Operating profit

1,115

277

1,391

Operating margin, %

8.6

2.0

9.2

Adjusted operating profit¹⁾

1,115

727

1,416

Adjusted operating margin, %

8.6

5.3

9.4

Return on capital employed, %

8.7

2.1

10.5

Number of employees²⁾

6,573

6,545

6,102