The Swedish quarrying and mining equipment heavyweight group's total revenues amounted to SEK 32,243 million (€2,802mn), a total growth of 19%. At fixed exchange rates, growth was 16%, of which 12% was organic.
Total order intake in the quarter amounted to SEK 31,660 million, corresponding to growth of 10% and 7% at fixed exchange rates, of which 3% was organic. Sandvik's Adjusted EBITA grew by 28% and amounted to SEK 6,599 million, corresponding to a margin of 20.5%. Group profit for the period amounted to SEK 3,326 million.
Sandvik reports strong momentum in mining automation, with two significant orders received totalling SEK 220 million.
Commenting on Sandvik's Q2 2023 performance, company CEO and president Stefan Widing said: "We delivered a solid set of results in the second quarter. Revenues grew by double digits for the ninth consecutive quarter; leverage was strong and operating margin was within our target range. We made progress in our shift to growth strategic focus areas. For example, we saw strong momentum in mining automation and won an important surface mining business. A few acquisitions were made, adding strength to our competence and offering. We also kept a good innovation pace and launched a higher-capacity battery for our BEV [battery electric vehicle] loaders, trucks, and new steel turning grades, specifically tailored to capture opportunities within the mid-market."
Widing said Sandvik Mining and Rock Solutions noted robust demand in its equipment and aftermarket business. Organic order intake grew by 6% yearly, resulting in the business's second-highest order intake.
Sandvik's Rotary Drilling division recorded strong growth in the quarter, supporting the Group's ambition to gain further ground in surface mining.
"Through our automation solutions, we are helping our customers improve safety, productivity, and reliability in their mine operations. Sandvik secured two significant automation deals for our loaders and trucks at a total value of SEK 220 million. Revenues reached an all-time high and grew organically by 18%," reported Widing.
Widing said second-quarter demand for Sandvik Rock Processing Solutions' products and services was "mixed". He continued: "While a positive sentiment was noted from mining customers, slower activity in infrastructure continued in the second quarter. The newly acquired SP Mining had a strong order intake development, contributing to approximately 30% year-on-year growth and was accretive to SRP's operating margin. At fixed exchange rates, total order intake grew by 12%."
Sandvik Manufacturing Solutions' software revenues grew by mid-single digits. A positive order intake development was seen in North America and Europe. The recovery in China after the re-opening has been slower than expected, with a weaker sentiment also signalled in the recent PMIs.
The daily order intake in the first two weeks of July was stable compared to the second quarter.
Widing concluded: "In summary, we leave yet another quarter with double-digit growth and a strong operating margin behind us. We are continuously making progress in our shift to a growth strategy, adding acquisitions that keep strengthening our position for growth while maintaining a good innovation pace and tight cost control. I want to thank the organisation for its strong commitment to delivering on our strategy. Sandvik is an agile, high-quality company."