Swedish high-technology engineering and steelmaking group Sandvik has issued its financial results for the fourth quarter and full year of 2013.
According to the financial results, Sandvik's net profit for the fourth quarter was SEK 46 million ($7.02 million), down from SEK 726 million in the corresponding quarter of the previous year. Order intake in the given quarter amounted to SEK 20.8 billion ($3.17 billion), up one percent year on year.
Sandvik's net profit for the whole year fell by 38 percent to SEK 5 billion ($763.8 million), while the order intake amounted to SEK 84.07 billion ($12.8 billion), down 10 percent, both year on year.
According to Sandvik, market demand in Europe was on par with the preceding quarter with signs of improvement in Germany and parts of eastern Europe. While mining activity in North America continued to decline, demand continued to display a positive trend in Japan and improved slightly in China. Activity in Australia and Africa remained unchanged at low levels due to the downturn in the mining industry.
Sandvik stated that production rates were maintained at a lower level in order to further reduce inventories, resulting in a significant release of cash.