TPT July 2011

I ndustry N ews

Sandvik reveals Q1 2011 segment results

DEMAND improved for Sandvik Materials Technology during the quarter. Order intake rose 14 per cent and invoiced sales 21 per cent at fixed exchange rates. Order intake for products for the energy sector and mining industry remained strong and the improvement continued for products used in the automotive, electronics and consumer goods industries. Earnings were negatively impacted by production disruptions in tube and pipe manufacturing, which also resulted in an increase in inventories. The global market situation gradually improved during the quarter, primarily in Europe and North America. The market for high-alloy products for the energy sector remained strong during the quarter although invoiced sales to the nuclear power industry decreased slightly compared with the preceding quarter due to a planned, lower delivery level. Demand also increased for products to the automotive, consumer goods, chemical and engineering industries, while the Tolexpo 2011: economic recovery and innovations THE 4 th edition of Tolexpo, the international show for sheet metal, coil, tube and section equipment, organised by DBR Event, will be held at Paris-Nord Villepinte Exhibition Centre from 15 to 18 November 2011. Six months before the show opens, Tolexpo already has more than 150 exhibitors, among them both French leaders in the sector and the majority of foreign manufacturers. Almost 11,000 targeted visitors looking for new equipment will discover the products and technical innovations offered by suppliers at the show. Visitors will find solutions to all their needs, whether they are looking to renew or modernise their equipment, begin using new technology, improve their productivity, or bring their businesses into line with

volume trend for medical technology applications remained weak. The tragic events in Japan during the quarter have not, to date, led to the cancellation or postponement of orders from the nuclear power industry. However, it is still too early to assess the long-term consequences. The ongoing capacity expansion is currently progressing as planned. An agreement was signed with Westinghouse for deliveries of cladding tubes to nuclear power stations during the quarter. The agreement extends over several years and corresponds to a total value of more than SEK3bn. Capacity utilisation increased in several areas but recurrent production disruptions in tube manufacturing resulted in lower deliveries and increased costs, and that working capital rose due to greater production inventories. A number of activities are under way to counteract the disruptions, and both improvements and growing deliveries

were noted in March. In April, a fire occurred in Sandviken’s wire production plant. The effects will impact production and deliveries of wire products during at least the second quarter. Working capital was 30 per cent (28) of invoiced sales. Operating profit amounted to SEK362mn (312) or 7.9 per cent (7.8) of invoiced sales. Changed metal prices had a positive effect of about SEK80mn on operating profit. Changed exchange rates had a negative impact of about SEK50mn. Return on capital employed for the past 12 months was +9.6 per cent (-1.9). Mr Jonas Gustavsson, former president of the Wire and Heating Technology product area, has been appointed president of the business area and took up his new position in May 2011. He succeeds Mr Peter Gossas, who will retire according to agreement. Sandvik – Sweden Website: www.smt.sandvik.com

Tolexpo takes place in Paris from 15 to 18 November 2011

standards and regulations. For the first time this year, in partnership with the Tolexpo show, Tôlerie magazine is organising a competition for students in the various areas that involve sheet metal working. The Tol&Design Challenge has been created to put the spotlight on the expertise of young people who have chosen the various subjects which involve sheet metal working, and aims to promote these subjects and the production chain itself, by bringing students together to work on an industrial project. It is also an opportunity for the students to present their expertise to industry professionals by creating finished products – in this case a chair – using precise specifications. The organisers of Tolexpo, Midest, the global sub-contracting show, and Maintenance Expo, the maintenance solutions show, are continuing to work

together in order to create communication synergies and boost their industry sectors. The major objective is to create a technological showcase that will bring the expertise of sub-contractors together with that of production equipment manufacturers. This agreement confirms the close links between these three events, which are positioning themselves to cover the whole of the industrial process, from start to finish, in various business sectors. It offers buyers and principals the opportunity to find solutions to all their needs under one roof: equipment and investments with Tolexpo; expertise with Midest; and services with Maintenance Expo. DBR Event – France

Email: info@tolexpo.com Website: www.tolexpo.com

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J uly 2011

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