Sandvik implements restructuring program to continue to strengthen operational efficiency
STOCKHOLM, Jan. 25, 2024 /PRNewswire/ -- Sandvik is continuously looking at ways to strengthen operational efficiency and resilience and have now decided to implement a new program of restructuring measures, supporting the strategy and the financial targets of the Group.
The new measures include consolidation of productions units and optimizing the structure of the organization. The measures are group-wide and global.
The program will generate annual savings of about SEK 1.2 billion. The share of total annualized savings expected to be reached by end of 2024 and end of 2025 are approximately around 80% and 100%, respectively. Out of the planned savings initiatives, 85% are structural and 15% are volume related.
"We are always reviewing options to improve our operational efficiency and enhance the resilience of the company. Driving efficiency in various ways also becomes important in times of macro-economic uncertainty. These initiatives will make us more resilient as well as further improve our ability to capture the growth opportunities ahead," says Stefan Widing, President and CEO of Sandvik.
Costs related to the restructuring are expected to amount to SEK 2.4 billion, which will be reported as non-recurring costs and reported as items affecting comparability in EBITA in the first quarter 2024.
BSEK |
SMM |
SMR |
SRP |
Total |
Costs |
1.4 |
0.5 |
0.5 |
2.4
|
Savings |
0.7 |
0.4 |
0.1 |
1.2
|
Of the total SEK 2.4 billion, approximately SEK 0.7 billion are non-cash items and the remaining SEK 1.7 billion mainly refers to redundancies of some 1,100 employees in total.
Stockholm, January 25, 2024
Sandvik AB
For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008
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SOURCE Sandvik
