Swedish manufacturer Sandvik AB (STO: SAND) reported invoiced sales for the third quarter were SEK 23.5 billion (US$3.6 billion), up 16 percent over the same period a year ago. At a fixed exchange rate for comparable units, sales increased 22 percent. Profit fell 55 percent to SEK 704 million (US$106.8 million).

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For the first nine months, invoiced sales were SEK 69 billion (US$10.5 billion), up 16 percent over the prior year period. At a fixed exchange rate for comparable units, sales were up 24 percent. Profit grew 6 percent to SEK 5.1 billion (US$773.5 million).

With the exception of certain segments, the business climate was positive in the third quarter and favorable development was reported for order intake and invoiced sales,\” said Olof Faxander, president and CEO. \”While both Sandvik Mining and Construction and Sandvik Tooling registered high demand, the trend for some of Sandvik Materials Technologys product groups weakened.\”

Markets in North America, South America and Australia posted positive development, while demand in Europe and Asia leveled off in certain segments.

On Nov. 1, Sandvik announced it would reduce its workforce in Sweden by 365 employees in the Materials Technology and Mining and Construction segments. The reduction is part of the manufacturer’s new strategic direction and organization.

Segment Results
Sandvik Tooling invoiced sales grew 12 percent in the quarter to SEK 6.7 billion (US$1 billion). At a fixed exchange rate for comparable units, segment sales increased 18 percent. For the first nine months, invoiced sales grew 14 percent (23 percent at a fixed exchange rate for comparable units) to SEK 20.1 billion (US$3 billion).

Sandvik Mining and Construction invoiced sales grew 25 percent in the quarter to SEK 10.8 billion (US$1.6 billion). At a fixed exchange rate for comparable units, sales grew 32 percent. For the first nine months, invoiced sales increased 22 percent (30 percent at a fixed exchange rate for comparable units) to SEK 29.9 billion (US$4.5 billion).

Sandvik Materials Technology invoiced sales grew 3 percent in the quarter to SEK 4.3 billion (US$652.2 million). At a fixed exchange rate for comparable units, sales were up 7 percent. For the first nine months, sales increased 8 percent (14 percent at a fixed exchange rate for comparable units) to SEK 13.8 billion (US$2.1 billion).