Sandvik Consolidates to Three Business Areas and Identifies Non-Strategic Operations
May 04 2016 - 1:41AM
Business Wire
Regulatory News:
Sandvik (STO:SAND)
Sandvik reorganises its operations in business area Sandvik
Venture. This includes:
· moving Wolfram (Wolfram Bergbau und Hütten) and two selected
production sites from Sandvik Hyperion into Sandvik Machining
Solutions
These businesses are internal suppliers to
Sandvik Machining Solutions. Wolfram supplies raw material through
virgin material from the mine, through its recycling operations as
well as from third party suppliers. The selected production sites
in Sandvik Hyperion supplies metal powder and develops round tool
blanks.
· moving Sandvik Drilling and Completions (Varel) into Sandvik
Mining and Rock Technology
The product offering comprises consumables -
drill bits and down-the-hole products - to the oil & gas and
mining industries. Drill bit products have the equivalent business
logic as the consumable offering in Sandvik Mining and Rock
Technology, in being an important driver for customer
productivity.
· Sandvik Process Systems and Sandvik Hyperion, excluding the
two sites to be merged into Sandvik Machining Solutions, are
identified as non-strategic operations and will remain in Sandvik
Venture, now to be labeled other operations
Over time, Sandvik has the ambition to exit
from these businesses, although the process is yet to be
initiated.
Reorganisation table available at
http://news.cision.com/sandvik/r/sandvik-consolidates-to-three-business-areas-and-identifies-non-strategic-operations,c2001518.
“By consolidating operations we will achieve total ownership and
accountability for the respective businesses, aiming to improve the
long term efficiency in Sandvik. For Sandvik Machining Solutions
the structural change is driven by achieving total ownership of the
supply chain and strengthening the position in the round tools
segment. For Sandvik Mining and Rock Technology we consolidate the
similar product offering of Rock Tools and Drilling and Completions
under the same umbrella. Over time we will exit from the businesses
now reported in other operations, making Sandvik even more focused
on its core businesses, says Bj�rn Rosengren, Sandvik’s President
and CEO. The new structure will be effective as of 1 July 2016.
Sandvik Venture business area and management team will hence be
dissolved. Bj�rn Rosengren, Sandvik’s President and CEO will have
the formal responsibility for other operations, while the
responsibility for further development of the business will remain
with the respective product area management teams. Jim Nixon,
current President of Sandvik Venture will leave Sandvik as of 1
July 2016. “I would like to take the opportunity to thank Jim Nixon
for his dedicated work in supporting the merger of the new
organization. I wish him all the best in his future career”, says
Bj�rn Rosengren.SANDVIK
SANDVIK OLD STRUCTURE 2015, MSEK SANDVIK
MACHINING SOLUTIONS SANDVIK MINING AND ROCK
TECHNOLOGY SANDVIK MATERIALS TECHNOLOGY
SANDVIK VENTURE SANDVIK GROUP
Revenues 32,652 30,971 13,909 8,292 85,845 Adjusted
operating margin, % 20.1 11.9 5.9 7.0 12.3 SANDVIK NEW
STRUCTURE 2015, MSEK SANDVIK MACHINING SOLUTIONS SANDVIK MINING AND
ROCK TECHNOLOGY SANDVIK MATERIALS TECHNOLOGY OTHER OPERATIONS
SANDVIK GROUP Revenues 33,809 33,131 13,909 4,976 85,845 Operating
profit 5,476 2,417 8 518 7,271 Operating margin, % 16.2 7.3 0.1
10.4 8.5 Adjusted operating profit 6,786 3,492 818 558 10,595
Adjusted operating margin, % 20.1 10.5 5.9 11.2 12.3 ROCE, % 21.7
9.7 0.1 13.3 9.5 Net Working Capital, % 26 31 25 31 27 No. of
employees 18,736 14,595 6,533 2,050 44,663
Stockholm, 3 May 2016
Sandvik AB
----------------------------------------------------------------------
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 2015, the Group had about 46,000 employees
and sales of about 91 billion SEK in more than 150 countries.
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http://news.cision.com
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SandvikAnn-Sofie NordhVice President Investor Relationstel: +46
8 456 1494orAnna VilogoracInvestor Relationstel: +46 8 456
1194orCarina AspenbergMedia Relations Managertel. +46 8 456
1307.
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