SANDVIK AB S/ADR - SDVKY STOCK NEWS

Sandvik has completed the acquisition of 100% of Sphinx Tools Ltd and its subsidiary P. Rieger Werkzeugfabrik AG, a Swiss manufacturer of precision solid round tools and surgical cutting tools. This strategic move aims to strengthen Sandvik's position in the high-growth micro tools market, enhancing its offerings within the Sandvik Coromant division. Sphinx Tools, founded in 1994, had revenues of approximately 292 MSEK in 2021. While the financial impact on Sandvik's earnings per share is expected to be slightly positive, the purchase price remains undisclosed.

Sandvik AB announced its decision to distribute all shares of its subsidiary Alleima AB to shareholders. The record date for this distribution is set for August 29, 2022, with trading of Alleima expected to commence on August 31, 2022. Shareholders will receive one share in Alleima for every five Sandvik shares held. The last day to trade Sandvik shares, including the right to Alleima shares, is August 25, 2022.

On August 2, 2022, Sandvik announced the acquisition of Balax, a US-based supplier of carbide and HSS cut taps, enhancing its offerings in the North American market. Balax, with 66 employees, reported revenues of $10 million in 2021. This acquisition aligns with Sandvik's growth strategy and will be integrated into Walter, a division focused on manufacturing and machining solutions. The impact on Sandvik's EBITA margin and earnings per share is projected to be limited, reinforcing the strategic importance of this acquisition.

Sandvik has secured a SEK 330 million order to provide battery-electric trucks, loaders, and drills for Foran Mining's McIlvenna Bay project in Saskatchewan, Canada. This project aims to be the world's first carbon-neutral copper development and is scheduled for equipment delivery between 2023-2025. The order, Sandvik's largest for battery-electric equipment, will enhance sustainable mining practices by utilizing clean hydroelectric power and advanced technology. Sandvik's Battery as a Service will optimize the lifecycle management of the electric vehicles.

Sandvik has appointed Richard Harris as the new President of the Rock Processing Solutions (SRP) business area, effective October 1, 2022. He succeeds Anders Svensson, who is leaving to lead Konecranes. Harris, with over 20 years at Sandvik, previously served as President of Walter and has a robust operational background. His leadership is expected to drive growth and strengthen the management team. Svensson's departure is set for October 14, 2022, after completing the third-quarter report.

Sandvik has successfully completed its acquisition of Spain-based Preziss, a firm specializing in cutting tools and solutions for high-precision drilling, reaming, milling, and tooling systems. Preziss generated approximately 10 MEUR in revenue in 2021 and has an EBITA margin considered neutral to Sandvik Manufacturing and Machining Solutions. The acquisition is expected to have a limited yet positive impact on Sandvik's earnings per share, and Preziss will now operate under the Sandvik Coromant division.

Sandvik is set to publish its second quarter results on July 15, 2022, at approximately 11:30 AM CEST. A combined webcast and conference call for investors and analysts will follow at 1:00 PM CEST, presented by Stefan Widing, President and CEO, and Cecilia Felton, CFO. Presentation slides will be available from 12:30 PM CEST on the company’s website. Dial-in details for the conference call include numbers for Sweden, the UK, and the US.

Sandvik has decided to wind down its operations in Russia following its initial pause on February 28, 2022. This decision arises from the ongoing situation in Ukraine. A non-recurring charge of approximately SEK 1 billion will be recorded in the second quarter results, comprising a SEK 0.7 billion write-down and a SEK 0.3 billion provision for personnel costs. As of May 31, 2022, remaining assets in Russia, excluding cash, are about SEK 0.7 billion. In 2021, Russian revenues accounted for 3.6% of Sandvik's total revenues.

Sandvik has agreed to acquire 100% of Portugal-based Frezigest, SGPS (Frezite), known for its custom polycrystalline diamond tools for metal and wood applications. The acquisition aligns with Sandvik's growth strategy in machining solutions, enhancing its PCD tooling capabilities for lightweight materials. Frezite generated approximately SEK 450 million in 2021 and is expected to grow at a mid-single-digit rate. The transaction is set to close in Q3 2022, with the purchase price undisclosed. The acquisition is anticipated to have a limited yet slightly positive impact on Sandvik's earnings per share.