Mr Lars Pettersson president & CEO of Sandvik said that "Demand remained weak in all customer segments with the exception of the energy segment. The market situation was weak in Europe and North America, while Asia and China in particular performed slightly better, as did the mining aftermarket.”

He said that “Compared with the preceding year order intake declined in price and volume by 28% and invoiced sales by 32%, amounting to SEK 17.2 billion and SEK 16.6 billion, respectively. Weak invoicing combined with planned low production rates to reduce inventories negatively impacted the operating result. This was partly compensated by implemented cost cutting actions."

He added that "Efforts to reduce working capital and lower the cost base generated strong cash flow. After investments and acquisitions, cash flow amounted to SEK 2.3 billion during the quarter. As customer de stocking reduces, the need for Sandvik’s products will grow, meaning that production rates can be increased thereby gradually improving earnings."