SDVKF - Sandvik AB (publ) (SDVKY) Q1 2024 Earnings Call Transcript
2024-04-22 13:04:09 ET
Sandvik AB (publ) (SDVKY)
Q1 2024 Earnings Conference Call
April 22, 2024 07:00 AM ET
Company Participants
Louise Tjeder - Head of Investor Relations
Stefan Widing - President and CEO
Cecilia Felton - Executive Vice President and Chief Financial Officer
Conference Call Participants
Daniela Costa - Goldman Sachs
Klas Bergelind - Citi
Andrew Wilson - JPMorgan
Max Yates - Morgan Stanley
Vlad Sergievskii - Barclays
Gael De-Bray - Deutsche Bank
Cunliffe Daniel - Bernstein SG
Andreas Koski - BNP Paribas
Presentation
Operator
Hello everyone and welcome to Sandvik's presentation of the First Quarter Results 2024. My name is Louise Tjeder, Head of Investor Relations. And beside me, CEO, Stefan Widing and CFO, Cecilia Felton. We will as we usually do, listen to Stefan and Cecilia take us through the highlights of this quarter. And after that, we will open up for questions. So now let's listen to the presentation. And please, Stefan.
Stefan Widing
Thank you, Louise. And also from my side, welcome to the first quarter report in 2024. If we summarize this quarter, we can see the typical seasonality with a positive book-to-bill. And overall, I would say the order intake levels are at the solid level in this quarter. We see a strong demand in aerospace a bit more, a mixed picture in general engineering and mining demand is on high levels, while infrastructure has remained weak in the quarter.
Total order intake declined by 7% of which organic decline was 5%. Revenues declined in total 6% and of that organic was 5%. And the organic decline on the revenue side of course also had an impact on our margins this quarter, adjusted EBITA decreased by 14% corresponding to margin of 18.2%. This leaves our rolling 12 months EBITA margin at 19.6%. So just like last year where starting a little bit on the lower side this year. We do see some of the savings starting to come through in the various restructuring programs and in this quarter it was SEK 128 million.
Adjusted profit for the period came in at SEK 3.3 billion. We also on this quarter continued to see good progress on our strategic priority areas. I was very happy to see very strong growth in our Rotary Drilling division, which is a business we are looking to grow. We also had a repeat major order for our AutoMine solutions, mine automation for what is the largest underground mining automation installation in the world. We also completed two acquisitions and we announced the third one after the close of the quarter. The innovation I want to highlight this quarter is our upgraded 800 series cone crusher.
This is our flagship crusher for the mining, for mining applications within rock processing. It's an updated crusher with a new automation and connectivity system which means it comes pre-prepared to be connected to our digital solutions. It also has an upgraded robust and optimized mechanical design that helps with reliability on simplicity which is key for our customers in this segment....
Sandvik AB (publ) (SDVKY) Q1 2024 Earnings Call Transcript