SANDVIK AB S/ADR - SDVKY STOCK NEWS

Sandvik has signed an agreement to acquire Polymathian Industrial Mathematics, an Australia-based provider of advanced mine optimization software. This acquisition strengthens Sandvik's offerings in digital mining technologies and complements its earlier acquisition of Deswik. Polymathian's solutions enhance automated decision-making and process optimization for major mining companies. As of June 2022, Polymathian reported annual revenues of around SEK 100 million with a 40% EBITA margin. The deal is expected to close in Q1 2023, with a positive impact on Sandvik's earnings per share.

On November 1, 2022, Sandvik completed the acquisition of the mining business of Schenck Process Group, a leader in screening, feeding, and train loading solutions. The acquisition is expected to generate approximately EUR 200 million in revenue for 2022, with around 70% from aftermarket services. Strong synergies are anticipated, driving a mid- to high-single digit revenue growth above market growth. The acquisition will be reported under Sandvik Rock Processing Solutions, with a neutral initial impact on earnings per share and an EV/EBITDA multiple of about 10x.

Sandvik Aktiebolag reported a robust third quarter for 2022 with significant growth metrics. Order intake reached SEK 29,231 million, reflecting a 16% increase at fixed exchange rates. Revenues increased by 22% to SEK 29,267 million. Adjusted EBITA rose to SEK 5,889 million, marking an adjusted EBITA margin of 20.1%. Despite revenue growth, profit for the period slightly declined to SEK 3,396 million. The adjusted profit for the period was SEK 3,913 million with diluted earnings per share at SEK 2.71.

Sandvik will release its third quarter results on October 17, 2022, at approximately 11:30 AM CEST. A combined webcast and conference call will follow at 1:00 PM CEST, hosted by President and CEO Stefan Widing and CFO Cecilia Felton. The presentation will be available live on Sandvik's website. Dial-in details for the call are provided for participants from Sweden, the UK, and the US. Presentation slides will be available on the website starting at 12:30 PM CEST.

On September 29, 2022, Sandvik announced non-recurring charges impacting its third-quarter results, related to the distribution of Alleima and the ongoing wind-down process in Russia. Following the distribution on August 31, Sandvik recognized a capital loss of approximately SEK 4.7 billion. Additionally, a charge of SEK 0.6 billion was recorded for the Russian wind-down, consisting of a write-down of SEK 0.4 billion and provisions for wind-down costs of SEK 0.2 billion. These charges will significantly affect both discontinued and continuing operations.

Sandvik has appointed Mats Eriksson as President of Sandvik Mining and Rock Solutions, effective October 1, 2022. Eriksson, who has led the Load and Haul division, is credited with driving growth and advancing battery-electric vehicle initiatives. His international experience includes leadership roles in multiple countries. CEO Stefan Widing expressed confidence in Eriksson's ability to foster strong leadership and organizational performance in the new role.

Sandvik has successfully raised EUR 500 million through its Euro Medium Term Note (EMTN) program, with a re-offer yield of 3.90% and a maturity date set for September 27, 2029. The bond offering was oversubscribed 2.9 times, attracting more than 80 investors. The funds are intended for refinancing maturing loans and general corporate purposes. Nordea, Danske Bank, Citibank, and Deutsche Bank served as joint bookrunners for this transaction, which will be listed on the Luxembourg Stock Exchange.

On September 16, 2022, Sandvik AB announced the appointment of its Nomination Committee for the 2023 Annual General Meeting scheduled for April 27, 2023. The committee includes members from the four principal shareholders and the Chairman of the Board, Johan Molin. Key responsibilities involve preparing proposals for Board member elections and auditor appointments. Shareholders can submit proposals to the committee's Secretary, Åsa Thunman, by January 16, 2023. In 2021, Sandvik generated revenues of approximately 86 billion SEK, employing around 39,000 people globally.

Sandvik has finalized the acquisition of Portugal-based Frezite, known for its polycrystalline diamond (PCD) tools used in metal and wood applications. Frezite generated revenues of approximately SEK 450 million in 2021, though its EBITA margin is slightly dilutive to Sandvik's Manufacturing and Machining Solutions. The acquisition aims to enhance Sandvik's capabilities in key sectors such as automotive and aerospace, with a limited but positive impact on Sandvik's earnings per share.