SDVKF - Sandvik AB (publ) (SDVKY) Q2 2024 Earnings Call Transcript

2024-07-19 11:08:05 ET

Sandvik AB (publ) (SDVKY)

Q2 2024 Results Earnings Conference Call

July 19, 2024, 08:00 AM ET

Company Participants

Louise Tjeder - Head of Investor Relations

Stefan Widing - President and Chief Executive Officer

Cecilia Felton - Executive Vice President and Chief Financial Officer

Conference Call Participants

Sebastian Kuenne - RBC Capital Markets

Klas Bergelind - Citigroup

Max Yates - Morgan Stanley

Andrew Wilson - J.P. Morgan

John Kim - Deutsche Bank

Vlad Sergievskii - Barclays Capital

Ben Heelan - Bank of America

Andreas Koski - Exane BNP Paribas

Daniela Costa - Goldman Sachs

Presentation

Louise Tjeder

Hello, everyone, and a warm welcome to Sandvik's presentation of the second quarter results 2024. My name is Louise Tjeder, Head of Investor Relations here at Sandvik. And beside me, I have our CEO, Stefan Widing, and CFO, Cecilia Felton.

We will start with the presentation. Stefan and Cecilia will take you through the highlights of the quarter and, after that, we will move on to the Q&A session.

And with this short introduction, I will hand over the word to you, Stefan.

Stefan Widing

Thank you, Louise. And also from my side, welcome to the second quarter report for Sandvik in 2024. If we summarize the quarter, we saw a stable development in the quarter, but the demand picture was mixed. We saw robust demand in mining and aerospace, while general engineering and automotive declined and also infrastructure remained weak, but with some regional variations that I will come back to.

Order intake growth was 2% in total. With that, we had 3% positive organic growth. Revenues declined by 3% in total. And of that, organic was a negative 2%.

The margin, we believe, is resilient on the current challenging volumes that we have in some parts of our business. Adjusted EBITDA decreased by 7% versus last year, corresponding to a margin of 19.6%. This puts our rolling 12 months at 19.4%.

Savings from our restructuring programs is starting to come through. They amounted to SEK 275 million in the quarter. And from a bridge point of view versus the same period of last year, they were increasing by SEK 243 million. Adjusted profit for the period came in at SEK 3.9 billion. ...

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