Sandvik's 4Q Profit Drops On One-Off Items
February 01 2012 - 1:52AM
Dow Jones News
Despite stable demand, Swedish engineering company Sandvik AB
(SAND.SK) Wednesday said it posted a decline in fourth-quarter
profit due to restructuring charges, raw material and currency
effects.
MAIN FACTS:
-Sandvik made a fourth-quarter net profit of SEK731 million
($107 million), compared with a profit of SEK2.1 billion a year
earlier.
-The average forecast in a Dow Jones Newswires/Factset poll of
nine analysts was for a profit of SEK1.5 billion.
-"The quarter's result and return were significantly impacted by
one-off costs for impairments and restructuring measures in
addition to the negative effects of changed metal prices and
currency effects," the firm said.
-Demand was stable during the quarter, it said.
-One-off charges amounted to SEK1.6 billion.
-Sandvik had previously said remaining one-offs related to the
roll out of its new strategy amounted to SEK1.3-1.6 billion, of
which most would be in the fourth quarter.
-Revenue totaled SEK25.1 billion, up from SEK23.3 billion a year
earlier and spot on expectations for SEK25.1 billion.
-EBIT was SEK1.6 billion, lower than SEK3.1 billion a year
earlier.
-Adjusted for one-off charges, EBIT totaled SEK3.2 billion.
-Analysts had expected EBIT of SEK3.6 billion.
-Order intake at SEK23.99 billion, down from SEK26.31
billion.
-The firm's board of directors proposes a dividend of SEK3.25
per share, up from SEK3.00 per share a year earlier.
-Shares Tuesday closed at SEK100.50.
-By Katarina Gustafsson, Dow Jones Newswires +46-8-5451-3097;
katarina.gustafsson@dowjones.com
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