By Jens Hansegard
STOCKHOLM--Swedish engineering group Sandvik (SAND.SK) Friday
reported a lower profit in its second quarter than in the same
period last year as higher nickel prices were more than offset by
negative currency effects.
Changed metal prices contributed positively to second-quarter
earnings by SEK177 million, as nickel prices have increased
significantly over the year, but currency exchange rates hit
earnings by about 200 million.
The low level of demand in the mining and construction
industries impacted earnings adversely, but was partly offset by
stronger development in other customer segments such as energy, the
company said.
Net profit for the second quarter fell to SEK1.53 billion from
SEK1.86 billion in the same period last year.
Sales fell to SEK22.05 billion, down 4% from SEK23.04 billion
last year.
Operating profit fell to SEK2.56 billion, down from SEK2.96
billion in the same period last year.
-Write to Jens Hansegard at jens.hansegard@wsj.com
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