Sandvik, a Swedish high-technology engineering and steelmaking group, has issued its financial results for the third quarter of 2010, stating that the global market situation improved in the third quarter increasing the demand for Sandvik's products.
According to the financial results, the net profit of the company was SEK 1.58 billion ($234 million) in the third quarter of 2010, compared with a net loss of SEK 181 million in the third quarter of 2009. Sales revenues in the third quarter of 2010 increased by 22 percent year on year from SEK 16.58 billion to SEK 20.24 billion ($3.04 billion).
The order intake of SEK 17.24 billion in the third quarter of 2009 rose 23 percent to SEK 21.52 billion ($3.23 billion) in the third quarter of the current year.
Earnings were hit by "negative currency effects" as the Swedish currency strengthened against the dollar and euro, Sandvik pointed out. Sandvik had returned to profit in the first quarter this year after four consecutive quarterly losses.
Commenting on the figures, Sandvik's president and CEO Lars Pettersson said, "Adjusted for seasonal effects, both order intake and invoiced sales rose. A high level of demand was noted in the energy sector and the improvement continued primarily in the automotive, mining and process industries. Order intake exceeded invoiced sales, resulting in a further strengthening of the order book."