Sandvik AB (SDVKF.PK, SDVKY.PK), a Swedish engineering company, announced Tuesday the implementation of the first phase of its previously announced initiatives in the business area Machining.
The planned restructuring measures would result in annual savings of about 380 million Swedish kronor. Around 40% of the run-rate savings will be realized by the end of 2025 and 90% run rate will be achieved by the end of 2026.
The company projects costs related to the restructuring to amount to 570 million kronor, which will be reported as non-recurring costs and as items affecting comparability in EBITA in the second quarter 2025.
Of the total charge, around 20 million kronor are non-cash items and the remaining mainly refers to redundancies of some 350 employees in total.
Sandvik on May 20 had announced that restructuring measures would be implemented in the business area Machining during the course of the 2025-2030 period, aimed at driving operational efficiency, margin resilience and support growth opportunities. As part of the measures, the company plans optimizing the structure of the organization and consolidation of productions units.
The company then noted that the initiatives would result in annual run-rate savings of 1 billion kronor by the end of 2030, with a total of 3 billion kronor in restructuring costs impacting reported EBITA in business area Machining over the full period.
In Stockholm, Sandvik shares were gaining around 2.4 percent to trade at 213.70 kronor.
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