Development in business areas

Sandvik operations consist of three business areas: Sandvik Machining Solutions, Sandvik Mining and Rock Technology and Sandvik Materials Technology.

Sandvik's order intake amounted to 95,444 million SEK (81,861), an increase of 15 percent at fixed exchange rates for comparable units. Revenue totaled 90,905 million SEK (81,553), up 10 percent at fixed exchange rates for comparable units.

Demand for Sandvik's products increased during 2017. This was the result of a broad-based improvement in all business areas and all main customer segments. The strongest growth was reported in the mining segment due to a significant improvement in demand for replacement equipment as well as higher demand in the aftermarket business. Demand for Sandvik's products improved in all regions.

On the back of increased demand, improved cost control and ongoing efficiency programs, Sandvik improved the profitability compared to last year.

During 2017 several important product launches took place, such as Sandvik Machining Solutions' launch of PrimeTurning™, which is a new methodology that enables turning in all directions. One expample from Sandvik Mining and Rock Technology is the new Ranger™ DXI series surface drill rigs which includes several new high-performing features for an improved drilling process, such as 55 square meter drilling coverage and is equipped with a new powerful rock drill in combination with high fuel efficiency. Sandvik Materials Technology launched Sentusys™, an intelligent tube system helping customers control the status of the tubes inside their processes with the help of cloud-based computing. The true innovation lies in the combination of metallurgical knowledge and the sensor technology.

Order intake by business area

MSEK20162017Change, %Change, %*
Sandvik Machining Solutions 33,088 36,636 11 10
Sandvik Mining and Rock Technology 31,886 38,973 22 20
Sandvik Materials Technology 12,036 14,739 22 22
Other Operations 4,830 5,096 6 9
Group activities 21 0 n/m n/m
Continuing operations 81,861 95,444 17 15
Discontinued operations 2,372 1,299 -45 -48
Group total 84,233 96,743 15 13

* Change compared with the preceding year, at fixed exchange rates for comparable units.

Revenue by business area

MSEK20162017Change, %Change, %*
Sandvik Machining Solutions 32,852 35,778 9 8
Sandvik Mining and Rock Technology 31,093 36,547 18 15
Sandvik Materials Technology 12,931 13,643 6 5
Other Operations 4,655 4,936 6 10
Group activities 22 0 n/m n/m
Continuing operations 81,553 90,905 11 10
Discontinued operations 2,877 3,081 9 3
Group total 84,430 93,985 11 10

* Change compared with the preceding year, at fixed exchange rates for comparable units.

Operating profit by business area

MSEK2016% of revenue2017% of revenueChange, %Change, %*
Sandvik Machining Solutions 6,970 21 8,413 24 21 21
Sandvik Mining and Rock Technology 3,206 10 5,743 16 79 76
Sandvik Materials Technology 1,115 9 284 2 -75 -42
Other Operations 545 12 4,432 90 713 11
Group activities -818 n/m -774 n/m 5 7
Continuing operations 11,018 14 18,098 20 64 33
Discontinued operations -1,361 -47 -61 -2 96 60
Group total 9,657 11 18,037 19 87 36

* Change compared with the preceding year, at fixed exchange rates for comparable units adjusted for items affecting comparability.
n/m=non meaningful.