Activity in the global mining industry remained strong in the second quarter compared with both the year earlier period and the preceding quarter. Sandvik’s strong position in the aftermarket was consolidated and a number of major contracts were secured, primarily in Australia. Demand from the construction industry also improved compared with the year earlier period but weakened slightly in relation to the preceding quarter. Order intake and invoiced sales rose 35% and 30% respectively at fixed exchange rates, compared with the year earlier period. Changed exchange rates had a significantly negative impact on order intake, invoiced sales and earnings.
Activity in the mining industry, both in underground and surface mines, remained very high during the quarter, and both order intake and invoiced sales were substantially higher than the year earlier period. The increase was robust in all regions but strongest for underground mines in Europe and South America, and surface mines in Asia and Australia. Demand also increased compared with the preceding quarter primarily due to a positive trend in Europe and Asia.
Demand improved also in the construction industry compared with the year earlier period, primarily in South America, Africa and Europe. However, order intake in the construction industry declined somewhat compared with the preceding quarter due to weakening demand in Asia and a leveling off in Europe and North America. A large project order valued at approximately SEK 1.2 billion for material handling systems to South America was secured during the quarter, compared with project orders for more than SEK 300 million in the year earlier period. The price trend remained positive compared with the preceding quarter.
Order intake exceeded invoiced sales by nearly SEK 2 billion, primarily attributable to project orders for delivery over a longer period, but also to extended delivery times for some key components and thus longer lead times in Sandvik's own production. The aftermarket portion of invoiced sales was 51%, while equipment and projects comprised 38% and 11%, respectively. Compared with the preceding quarter, working capital rose slightly due to higher inventories and amounted to 26% of invoiced sales.
Operating profit in the second quarter amounted to SEK 1,405 million or 14.2% of invoiced sales. Earnings were impacted by more than SEK -300 million due to changes in exchange rates. Return on capital employed over the past 12 months amounted to 30.7%.
