Sandvik Implements the Final Phase of the Supply Chain Optimization Program & Makes Further Right-Sizing as Well as Impairments
December 10 2015 - 2:23AM
Business Wire
Regulatory News:
Sandvik (STO:SAND) has identified additional structural
efficiency measures which will generate annual savings of about 600
million SEK, including the third and final phase of the supply
chain optimization program. Results for the fourth quarter of 2015
will be impacted by non-recurring charges totaling 1,550 million
SEK, out of which 552 million SEK impact cash flow.
“The total supply chain optimization program will reduce the
number of production units by 23, in line with the original target
for continuing operations. We will achieve significant efficiency
improvements as a result of the reduction in the cost base over
time,” says Bj�rn Rosengren, Sandvik’s President and CEO. “The
additional right sizing measures are structural and taken to
improve internal efficiency long term, hence do not reflect any
recent change in the market environment. Impairment losses are
primarily related to weaker than expected performance in parts of
Sandvik’s operations in China.”
Due to a review of Sandvik Mining’s supply chain optimization
program phase two, Sandvik releases cost provisions of 169 million
SEK. The targeted savings for the total supply chain optimization
program are 1.3 billion SEK for continuing operations.
MSEK
SUPPLY CHAIN OPTIMIZATION
RIGHT-SIZING SANDVIK MACHINING SOLUTIONS
& GROUP
IMPAIRMENTS
GROUP TOTAL
ESTIMATED SAVINGS RUN-RATE AT YEAR-END
2017
323 282 - 605 NON-RECURRING ITEMS Q4 2015 254 321 975 1,550 CASH
FLOW IMPACT 231 321 - 552
Information concerning individual units will be announced
locally on a case-by-case basis, pending union consultations.
Stockholm, 10 December 2015
Sandvik AB discloses the information provided herein pursuant to
the Securities Markets Act and/or the Financial Instruments Trading
Act. Information was submitted for publication at 08.00 CET, 10
December 2015.
Sandvik Group
Sandvik is a high-tech and global engineering group offering
advanced products and services that enhance customer productivity,
profitability and safety. We hold world-leading positions in
selected areas – tools for metal cutting, equipment and tools for
the mining and construction industries, stainless materials,
special alloys, metallic and ceramic resistance materials as well
as process systems. In 2014, the Group had about 47,000 employees
and sales of about 89 billion SEK in more than 150 countries.
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SandvikAnn-Sofie NordhVice President Investor Relationstel: +46
8 456 1494orAnna VilogoracInvestor Relationstel: +46 8 456
1194orOskar LindbergInvestor Relationstel +46 8 456 1230.
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