Sandvik welcomes increased profits

Swedish engineering group Sandvik has announced first quarter post-tax profits of 2.7 billion kronor. This was up on results for the first quarter of 2005, when the company presented profits of 1.9 million kronor.

Reuters reported than analysts had on average expected a profit of 2.4 billion.

Sandvik’s turnover increased by 15 percent, from 14.2 billion kronor to 17.5 billion. Orders were up 23 percent to 21 billion kronor.

The company said its Mining & Construction subsidiary had performed particularly well, with orders up 46 percent. The division had received a number of large orders during the quarter, with a total value of more than 1.6 billion kronor.

Orders for Sandvik Materials Technology was up 12 percent and Sandvik Tooling was up 13 percent.

The company said its order intake rose by 29 percent in Europe, and 10 percent in North America.

“We are continuing to develop our offering with new solutions for increased customer benefit,” said Lars Pettersson, Sandvik’s CEO.

“Combined with a continued global expansion, this increases our competitiveness and ensures growth as well as profitability,” he said.