Growth and operational excellence were key themes at Sandvik’s Capital Markets Day. CEO Olof Faxander outlined his plan for the next three to four years, including the company’s shift toward fast-growing markets, higher returns and reduced earnings volatility.
“Implementation of the new strategy has been carried out with speed and determination since its launch in 2011. This has resulted in a more customer-centric organization, operational excellence, restructuring and a turnaround for the company – all of which are crucial to our growth ambitions”, said Olof Faxander.
However, Sandvik faces various types of challenges on a continuous basis. The Sandvik Mining business has been adjusting production levels in response to the market slowdown observed during the first half of the year. Further cost reductions of EUR 58M–80M are planned as part of the adjustment to these market conditions.
Sandvik will base its allocation of capital to its business areas on their size, growth and return, mainly in the developing markets and in North America, with Europe playing a less prominent role.
“The short-term challenges are well under control. They are not diverting focus from our positive approach in the longer perspective, and I am convinced that we are building an even stronger Sandvik for the years ahead,” said Olof Faxander.