Sandvik shares dip after 'mixed' Q3

Sandvik AB

Yesterday 09:16

** Shares of Swedish engineering group Sandvik SAND.ST fall about 5% as the company's Q3 margins missed expectations despite better-than-expected sales
** While orders and sales beat estimates, adjusted EBITA margin missed forecasts by 10 bps, J.P.Morgan says
     ** "Overall, we see this print as mixed against high expectations in Mining orders and Machining margins, with a high degree of uncertainty remaining on the evolving tungsten situation," JPM says
** The brokerage adds that the tungsten-related EBITA benefit of SEK 104 million came in below expectations and is expected to have only a limited impact in the fourth quarter
** Additionally, Rock Processing orders missed both JPM and consensus estimates, with organic order intake declining 8%, the brokerage says
** Today's losses wiped out 14.8 billion Swedish crowns from the company's market cap
     

(Reporting by Agnieszka Gosciak-Rabalska)
((Agnieszka.Gosciak@thomsonreuters.com))