- Sandvik posted a pretty decent beat at the operating income line, but SMS results were noticeably weak at the revenue and order lines.
- Demand from the aerospace and oil/gas end-markets remains very weak, while auto and general industrial demand is recovering.
- Mining was better than expected, with better margins and revenue, and surprisingly strong new equipment orders offsetting a 9% decline in aftermarket orders on ongoing COVID-19 pressures.
- Sandvik shares are starting to look more interesting on a relative basis as a short-cycle recovery story, but I'd like to hear what management has to say about its long-term strategy before getting more bullish.
For further details see:
Sandvik Outperforms On Margins, But Weak Industrial Orders Are A Concern