Report on the first quarter 2012

CEO's comment:

Record-high order intake for the quarter

"The global market situation remained favorable and demand was high for the greater part of Sandvik's products and services in the first quarter. Order intake displayed very robust development and reached the highest-ever level for the Group at 28.9 billion SEK, corresponding to an increase of 13% at fixed exchange rates. Invoiced sales rose 10% to 24.8 billion SEK. Although the market scenario was largely stable in Europe and strong in North and South America, it was a mixed picture in Asia, where development in China in particular fluctuated significantly among the various segments", says Sandvik's President and CEO Olof Faxander.

"The mining industry remained strong and major orders were booked in South America, Australia, Asia and Europe. Demand remained high for products primarily from Sandvik Mining and Sandvik Machining Solutions. For Sandvik Materials Technology, the demand picture was mixed and while high demand was noted in the energy segment, several other segments continued to weaken. Operating profit also developed positively and amounted to 3.8 billion SEK."

"The new organization is now implemented and we have started to see effects of the first steps of our new strategic direction. We have been able to leverage on a continued positive market climate and achieve both a record-high order intake and high invoicing level. Still, we have improvement potential in Net Working Capital as well as cash flow. We must not forget that this is the beginning of a journey of improvement, which will take time and include both successes and setbacks, but we are on the right track."

Sandviken, 27 April 2012

Sandvik Aktiebolag (publ)
Olof Faxander
President and CEO