SANDVIK AB S/ADR - SDVKY STOCK NEWS

Sandvik has secured a significant order for underground mining equipment from Cimertex, a distributor in Portugal. The equipment, valued at approximately SEK 340 million, will be supplied to Almina Minas do Alentejo S.A.

Deliveries are set to commence in Q3 2024 and continue through 2025. The order includes Toro™ TH663i trucks, Toro™ LH621i loaders, Sandvik DS411 rock bolters, and Sandvik DL421 longhole production drills. A significant portion of the trucks will feature the AutoMine® Fleet automation system.

Additionally, the order incorporates a seven-year full aftermarket service contract. This agreement will enable Almina to double its current production capacity in the Iberian pyrite belt, positioning it as one of the largest Sandvik fleets in Europe.

Mats Eriksson, President of Sandvik Mining and Rock Solutions, expressed satisfaction in strengthening their relationship with Cimertex and supporting Almina in enhancing productivity and reducing costs.

Sandvik announced a significant order to supply a fleet of intelligent underground drills to a mining customer in Southeast Asia. The order, valued at approximately SEK 500 million, was booked in Q2 2024. The agreement includes development drills, rock bolters, and longhole drills. Deliveries are scheduled to begin in Q3 2024 and will continue through Q2 2025.

Stockholm, July 1, 2024 - Sandvik has finalized the acquisition of a majority stake in Suzhou Ahno Precision Cutting Tool Technology, a leading China-based company, from Ningbo Baosi Energy Equipment and related parties. Ahno, founded in 2002 and headquartered in Suzhou, China, employs approximately 1,200 individuals. In 2023, Ahno generated revenues of around CNY 812 million (1.2 BSEK) primarily from the Chinese market. This acquisition will be integrated into Sandvik Machining Solutions. The impact on Sandvik's EBITA margin will be , but it is expected to positively affect Sandvik's earnings per share, excluding non-cash amortization effects from business combinations.

On June 4, 2024, Sandvik announced the acquisition of PDQ Workholding, a US-based specialist in custom workholding fixtures and tooling for various industries, including aerospace, automotive, and energy. PDQ will be integrated into Walter, a division within Sandvik Manufacturing and Machining Solutions. This acquisition aims to strengthen Sandvik’s presence in North America, enhance relationships with machine tool builders, and provide early access to component projects. PDQ, founded in 2010, operates from two manufacturing sites with 107 employees and reported a revenue of USD 36 million in 2023. The acquisition is expected to have a impact on Sandvik's EBITA margin and earnings per share.

Sandvik has secured a significant order from Hindustan Zinc for underground mining equipment worth approximately SEK 345 million. The order was booked in Q2 2024, with deliveries scheduled through the end of 2024. This contract strengthens the long-standing partnership between the two companies and includes development drills, production drills, trucks, and loaders. Additionally, the deal offers substantial aftermarket value, enhancing productivity, safety, and sustainability in Hindustan Zinc's operations.

Mats Eriksson, President of Sandvik Mining and Rock Solutions, expressed his satisfaction with the expanded partnership and highlighted the benefits of Sandvik's advanced mining solutions.

Sandvik has finalized the acquisition of Almü, a Germany-based cutting tools and solutions provider. Almü, founded in 1978, has 44 employees and generated approximately 6 MEUR in revenues in 2022. The acquisition will be reported in Sandvik Coromant, impacting Sandvik's EBITA margin and earnings per share minimally.

Sandvik AB held its Annual General Meeting in Sandviken, Sweden on April 29, 2024. The company reported strong revenue growth and profitability for 2023, adopting financial accounts, electing new Board members, and approving a dividend of SEK 5.50 per share. The meeting also approved a long-term incentive program for senior executives and authorized the acquisition of the company's own shares.

Sandvik has signed an agreement to acquire a majority stake in Suzhou Ahno Precision Cutting Tool Technology Co., , a leading China-based company. This acquisition strengthens Sandvik's presence in the Chinese market, particularly in the precision cutting tool segment for industries like general engineering, automotive, and medical, with a focus on electric vehicles. The transaction will see Sandvik owning 72.4% of Ahno, with the company generating revenues of approximately CNY 812 million in 2023. The enterprise value for the acquired stake is CNY 1,456 million, and the deal is expected to close in the third quarter of 2024.

Sandvik's first-quarter 2024 financial results showed a decline in order intake, revenues, and profits compared to the previous year. The company reported a decrease in adjusted EBITA margin and earnings per share. The webcast and conference call will provide further insights on the financial performance.