Development in business areas

In 2020, Sandvik’s operations consisted of three business areas: Sandvik Mining and Rock Technology, Sandvik Manufacturing and Machining Solutions, and Sandvik Materials Technology.

Order intake by business area

MSEK

2019

2020

Change, %

Change, %1)

1)

Change compared with the preceding year, at fixed exchange rates for comparable units.

SMRT

44,379

41,403

–7

–1

SMM

41,163

32,677

–21

–18

SMT

16,475

11,910

–28

–27

Other operations

2,059

297

–86

–5

Group activities

0

0

n/m

n/m

Continuing operations

104,075

86,287

–17

–12

Discontinued operations

71

1

–98

n/m

Group total

104,147

86,288

–17

–12

Revenue by business area

MSEK

2019

2020

Change, %

Change, %1)

1)

Change compared with the preceding year, at fixed exchange rates for comparable units.

SMRT

44,777

40,032

–11

–5

SMM

41,123

32,477

–21

–19

SMT

15,279

13,598

–11

–10

Other operations

2,059

297

–86

–5

Group activities

0

0

n/m

n/m

Continuing operations

103,238

86,404

–16

–11

Discontinued operations

295

6

–98

–98

Group total

103,533

86,409

–17

–11

Operating profit by business area

MSEK

2019

% of revenue

2020

% of revenue

Change, %

Change, %1)

1)

Change compared with the preceding year, at fixed exchange rates for comparable units adjusted for items affecting comparability.

n/m = non meaningful.

SMRT

8,602

19

7,389

18

–14

–3

SMM

8,380

20

4,606

14

–45

–33

SMT

1,444

9

492

4

–66

–39

Other operations

–4,263

n/m

–578

n/m

–86

–43

Group activities

–776

n/m

–694

n/m

–11

–41

Continuing operations

13,386

13

11,216

13

–16

–19

Discontinued operations

–204

–69

–32

n/m

–84

–82

Group total

13,182

13

11,184

13

–15

–18

All sections open all paragraphs

Sandvik Mining and Rock Technology

Sandvik Mining and Rock Technology is a leading supplier of equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry. Order intake for the business area amounted to SEK 41,403 million (44,379), a decrease of –1 percent at fixed exchange rates for comparable units. Revenue totaled SEK 40,032 million (44,777), down –5 percent at fixed exchange rates for comparable units. The operating margin was 18.5 percent (19.2) of revenues and the adjusted operating margin was 19.8 percent (19.9) of revenues. The items affecting comparability of SEK –533 million (–309) were predominantly related to efficiency measures to ensure cost efficiency. Effects from the Covid-19 pandemic: Production was impacted only to a minor extent during the year, and both supply and distribution proceeded as planned. During the second quarter there was a temporary negative impact on demand due to limited access to mines but there was a recovery during the second half of the year.

Financial overview

MSEK

2018

2019

2020

1)

Operating profit adjusted for items affecting comparability of SEK –90 million in 2018, of SEK –309 million in 2019 and of SEK –533 million in 2020.

2)

Full-time equivalent.

Order intake

41,842

44,379

41,403

Revenue

41,058

44,777

40,032

Operating profit

7,452

8,602

7,389

Operating margin, %

18.2

19.2

18.5

Adjusted operating profit1)

7,542

8,911

7,923

Adjusted operating margin, %

18.4

19.9

19.8

Return on capital employed, %

33.9

32.3

28.0

Number of employees2)

14,397

14,223

14,178