Sandvik Mining and Rock Technology
Sandvik Mining and Rock Technology continued to benefit from a strong mining market in 2018. The favorable market situation, coupled with the positive effects from internal efficiencies, resulted in a solid financial year for the business area.
Business area Sandvik Mining and Rock Technology is a leading supplier of equipment and tools, service and support for the mining and construction industries. We offer service and technical solutions for rock drilling, as well as rock cutting and rock excavation, crushing and screening, loading and hauling, tunneling, quarrying and breaking and demolition work.
Operating margins for the business area have increased significantly since 2015. This can be attributed to both internal activities to streamline the organization and make it more efficient, as well as to the concentrated efforts to decentralize Sandvik’s business. We grew significantly in the aftermarket business, which in 2018 accounted for 61 percent of revenues.
The mining market continued to develop positively in 2018. Commodity prices were generally stable, despite a drop in gold and copper prices in 2018. Much of this was due to currency fluctuations, mainly against the dollar, rather than commodity shortages. Capital expenditures were at a steady level and this continued to drive our equipment sales for both underground and surface mining equipment. Gross domestic product, which is one important driver for infrastructure investments, remained stable at 3 percent growth globally. Our largest markets are Australia and South Africa.