Sandvik Clocks 23% Revenue Growth In Q3, Targets Sandvik Materials Technology Listing In 2022

Sandvik AB SDVKF reported third-quarter revenue growth of 23.2% year-over-year to SEK 24.83 billion, with organic growth of 13%.
Sales by segments: Mining and Rock Solutions SEK 11.11 billion (+32% Y/Y), Rock Processing Solutions SEK 1.79 billion (+17% Y/Y), Manufacturing and Machining Solutions SEK 8.82 billion (+20% Y/Y) and Materials Technology SEK 3.1 billion (+7% Y/Y).
The gross margin improved to 39.9% compared to 38.8% a year ago.
Order intake increased organically by 21% Y/Y to SEK 26.29 billion, driven by solid demand across the business. The Book-to-bill ratio was at 106%.
Adjusted EPS improved to SEK 3.03 compared to SEK 2.09 in 3Q20.
Adjusted EBITDA increased by 33% Y/Y to SEK 4.73 billion, and margin expanded by 140 bps to 19.1%.
The operating income increased by 30% Y/Y to SEK 4.48 billion, and the margin expanded by 80 bps to 18.1%.
Sandvik generated cash from operating activities before changes in working capital of SEK4.64 billion, compared to SEK 3.95 billion a year ago. Free operating cash flow for the quarter was SEK 3.94 billion, compared to SEK 4.78 billion a year ago.
The Board confirmed their decision to proceed with preparations to distribute Sandvik Materials Technology, targeted at second or third quarter 2022.
Price Action: SDVKF shares closed Friday's session at $24.60.

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