Sandvik's Q1 profit falls more than expected as buyers delay deliveries
Adds CEO comments in paragraph 6-9,12
By Marie Mannes
STOCKHOLM, April 22 (Reuters) -Shares in Swedish metal-cutting and mining equipment maker Sandvik SAND.ST fell as much as 4% on Monday after its first-quarter core profit missed estimates, with the company pointing to mixed demand and some customers preferring to wait to take delivery of orders.
Sandvik - among the first of the Nordic industrials to report quarterly results - is considered a reliable indicator of demand given its broad customer base.
Order intake was down 5% excluding acquisitions, at 32.0 billion crowns, against the 31.5 billion expected by analysts.
In a statement, CEO Stefan Widing said demand from the mining and aerospace sectors was good but more mixed for its general engineering products.
"Looking beyond the dynamics within the quarter, we see a stable to positive sentiment among our customers and continued investment willingness," Widing said.
Widing also mirrored peer ABB's ABBN.S comments last week that there were positive signs on growth in China.
"We have seen decent growth on the industrial side, in particularly driven by what we call general engineering, so the broader industry," Widing told reporters on a call.
Within mining, the CEO said the demand picture was solid but there was a shortfall in terms of sales invoicing.
"We have an order backlog that's almost a year of invoicing. So it's not that we don't have the orders, it's more a matter of when the customer wants the delivery," he said.
As a result, Sandvik was expecting to invoice the majority of its orders in the remaining three quarters, Widing said.
First quarter operating profit before amortisation and adjusted for previously announced restructuring costs fell to 5.28 billion Swedish crowns ($484 million) from 6.12 billion a year earlier.
Analysts polled by LSEG had expected a profit of 5.69 billon, although the results were as much as 10% below some broker forecasts and JPMorgan called the quarter "disappointing".
"We are offsetting cost inflation with pricing and we expect to continue to do so," Widing told reporters.
($1 = 10.9171 Swedish crowns)
Reporting by Marie Mannes, editing by Anna Ringstrom, Kirsten Donovan
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