Sandvik forms new business area

Sandvik will merge its operations Sandvik Mining and Sandvik Construction into one business area – Sandvik Mining and Rock Technology. Sandvik Mining and Rock Technology operations will be organized in a de-centralized business model with separate product areas based on the product offering. Each product area will have full responsibility and accountability for its respective business.

“Products developed for the customer segments mining and construction are based on common technologies with a similar aftermarket offering. In addition, manufacturing units are already largely shared with to some extent shared front line resources. By joining the operations into one business area we achieve a leaner and more efficient structure. The decentralized business model enables an even clearer focus and faster response to our customers”, says Björn Rosengren, Sandvik´s President and CEO.

The new structure will be effective as from 1 July 2016 and Lars Engström, currently President of Sandvik Mining has been appointed President of the new business area, Sandvik Mining and Rock Technology. Dinggui Gao, President of Sandvik Construction will leave the company as of 1 July 2016.

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“I would like to take the opportunity to thank Dinggui Gao for his dedicated work in supporting the merger of the new organization. I would like to express my appreciation for his work to drive Sandvik Construction, resulting in documented improvements. I wish him all the best in his future career”, says Björn Rosengren.

Further details on the new structure will be included in the presentations at the upcoming Sandvik Capital Markets Day on 24 May 2016.

2015 Sandvik Mining and Rock Technology, continuing operations

Q1                        Q2                        Q3                        Q4             FY 2015

Order intake                          7 986                   8 188                   7 156                   6 845               30 175

Invoicing                               7 633                   7 993                   7 749                   7 596               30 971

EBIT                                        120                   1 011                      947                      534                 2 612

EBIT %                                      1.6                     12.6                     12.2                       7.0                     8.4

EBIT adjusted                          905                   1 011                      947                      813                 3 676

EBIT %, adjusted         11.9     12.6     12.2     10.7     11.9