Swedish metal-cutting and mining equipment maker Sandvik is targeting annual savings of 1 billion Swedish crowns ($103.3 million) by the end of 2030, it said in a statement on Tuesday ahead of its investor days.
Sandvik will divide its Manufacturing and Machining Solutions business into two separate areas and plans to implement restructuring measures in the Machining business throughout 2025-2030 to improve its geographical manufacturing footprint and increase regionalisation, it said.
The Manufacturing and Machining Solutions business made up about 40% of Sandvik’s revenues in 2024. It has suffered from weak demand in Europe and in the automotive sector in recent quarters.
The restructuring measures will incur costs of 3 billion crowns over the five-year period, related to site consolidations and other measures, Sandvik said.
Ahead of a two-day capital markets event in Sweden, Sandvik said it would confirm its long-term financial targets, including 7% revenue growth and an adjusted operating margin (EBITA) in the range of 20% to 22%.
Its shares rose about 0.9% after the statement was published.
($1 = 9.6794 Swedish crowns)
(Reporting by Greta Rosen Fondahn, editing by Milla Nissi-Prussak)
