SANDVIK AB S/ADR - SDVKY STOCK NEWS

Sandvik, based in Sweden, is implementing new structural measures to enhance competitiveness and efficiency. Announced on May 17, 2022, these initiatives include consolidating production units and optimizing the sales organization, primarily in Sandvik Machining Solutions. Expected annual savings are around 600 million SEK, with full realization by 2025. Restructuring costs are anticipated at SEK 1.7 billion, with a significant portion for employee redundancies. The CEO emphasized the need for agility and operational efficiency to support strategic growth.

On May 17, 2022, at Capital Markets Day in Stockholm, Sandvik's CEO Stefan Widing announced a strategic shift to growth, outlining new financial targets. The company aims for a 7% organic growth rate, an adjusted EBITA margin of 20-22%, and a financial net debt to EBITDA ratio of less than 1.5. Additionally, Sandvik plans to distribute and list its business area, Sandvik Materials Technology. The presentations will be available online, with recordings released by May 18, 2022.

On May 11, 2022, Sandvik announced its acquisition of Peterson Tool Company, a US-based supplier of custom tooling solutions primarily for the automotive and general engineering sectors. With 73 employees and 2021 revenues of 9 million USD, Peterson Tool will be integrated into Sandvik's GWS Tool business unit. This move aligns with Sandvik's growth strategy to enhance its North American market presence. The transaction will slightly positively impact Sandvik's earnings per share, with completion expected in the second or third quarter of 2022.

Sandvik and Hindustan Zinc have entered a Memorandum of Understanding for supplying a battery-electric underground equipment fleet at the Sindesar Khurd Mine. Deliveries will begin in Q1 2023, marking the first deployment of such a fleet in India. The equipment includes a LH518B loader, three TH550B trucks, and a DD422iE drill rig. These vehicles will utilize Sandvik's unique charging technology and are designed to enhance productivity by up to 20%. This collaboration underscores Sandvik's commitment to battery-electric vehicle expansion and Hindustan Zinc's carbon neutrality goals.

On April 27, 2022, Sandvik AB's Annual General Meeting approved a proposal to distribute all shares of its subsidiary Alleima to shareholders. The record date for the distribution is set for August 29, 2022, with trading in Alleima shares starting on August 31, 2022, on Nasdaq Stockholm. Alleima aims to lead in advanced materials, with financial targets including organic revenue growth and a 9% EBIT margin. Key dates include the publication of Alleima's prospectus on August 4 and its first Capital Markets Day on August 23.

Sandvik AB held its Annual General Meeting on April 27, 2022, in Sweden, where President and CEO Stefan Widing highlighted strong organic growth and acquisition activities for 2021. The meeting adopted financial accounts and approved a dividend of SEK 4.75 per share, with the record date set for April 29, 2022. Shareholders will receive shares in Alleima Holding AB at a ratio of 5:1 for Sandvik shares. The Board was re-elected, and a long-term incentive program covering 1.9 million shares was approved, estimated to cost up to SEK 346 million.

Sandvik, in its Q1 2022 report, announced a strong performance with SEK 30,474 million in order intake, a growth of 30% year-over-year at fixed exchange rates. Revenues also rose to SEK 24,921 million, marking a 27% increase. The adjusted EBITA was SEK 5,043 million, reflecting a 20.2% margin, although slightly down from 21.4% in the previous year. Profit for the period was SEK 3,395 million, up from SEK 2,885 million in Q1 2021. The report highlights Sandvik's fifth consecutive quarter of double-digit growth.

On April 11, 2022, Sandvik announced updates to its financial reporting methods, including the treatment of Sandvik Materials Technology as discontinued operations. From Q1 2022, adjusted EBITA will replace adjusted EBIT as the primary profit metric, with M&A transaction costs reported as items affecting comparability. Key comparative figures for Q1 2021 through FY 2021 reveal fluctuating order intake, revenues, and profit margins, indicating a mixed financial performance. The upcoming Annual General Meeting is set for April 27, 2022.

Sandvik will release its first quarter results on April 20, 2022, at approximately 11:30 AM CEST. Following the report, a combined webcast and conference call for investors and analysts will take place at 1:00 PM CEST, led by President and CEO Stefan Widing and CFO Cecilia Felton. Attendees can access presentation slides from 12:30 PM CEST on the company website. Dial-in options are available for participants in Sweden, the UK, and the US.