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More News!. Fler nyheter!. Sandvik's steel arm sees Q2 orders collapse on weak demand Sandvik Materials Technology, the steel producing division of Sweden’s Sandvik Group, saw its order intake fall by 34% year-on-year in the second quarter of
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Fler nyheter! Sandvik's steel arm sees Q2 orders collapse on weak demand Sandvik Materials Technology, the steel producing division of Sweden’s Sandvik Group, saw its order intake fall by 34% year-on-year in the second quarter of 2009, Steel Business Briefing learns from the company. Demand from end-users remained very weak in the quarter, says Lars Pettersson, ceo of Sandvik Group. The exception was demand from the energy sector, “which remained robust”. This was particularly true of the nuclear power industry, “This is the only area we are planning to add capacity,” he says. The global automotive industry meanwhile showed “continued weakness” in Q2, with the exception of China, Pettersson says. The company is increasing capacity for steam generator tubes, used in the nuclear energy sector, at its Sandviken works in Sweden, as SBB has reported. The Materials Technology segment saw invoiced sales fall to SEK 3.8bn (€344m) in Q2, down 43% from the same quarter last year. The division made an operating loss of SEK 750m in Q2 2009, compared with an operating profit of SEK 534m for Q2 2008. The company emphasises that earnings were “adversely impacted” by a loss of SEK 360m from the effects of metals inventory revaluation. SBB learns that Sandvik Group is currently producing at around 10-20% below deliveries across all business areas in order to help inventory reduction. This is likely to continue for the rest of the year. The third quarter is expected to be difficult. But cost reductions are now “beginning to bite”, says Pettersson, adding, “There is also good potential to continue to further reduce inventory.” SBB 20.7.2009
