By Niclas Rolander

April 18, 2019 - Sandvik AB, the world’s largest maker of cutting tools, poured cold water on concerns about a European manufacturing slump, saying Germany is a weak spot but that other markets are doing fine.

Chief Executive Officer Bjorn Rosengren said Thursday that demand is “generally robust at a high level” with no signs of a downturn after announcing first-quarter orders of 27.8 billion kronor ($3 billion) that beat analyst estimates.

Sandvik is one of the first European industrials to report results, and does so against a backdrop of concern about weakness in the sector. An index of sentiment among German manufacturers fell to a seven-year low in March, but the Swedish company said Europe’s largest economy is an isolated case, held back by sluggish car sales.

Sandvik tools, including drills and milling cutters, are used to make metal components for autos, planes and industrial gear. Demand at its machining-solutions arm, has more than 100,000 customers worldwide, gained in North America, was stable in Europe and fell in Asia, which has also seen a softening of the autos segment.

Sales of mining equipment were a particular bright spot, with the order intake jumping 9 percent at constant exchange rates and excluding acquisitions and disposals.

The group’s first-quarter operating profit of 4.57 billion kronor and sales of 25 billion kronor were roughly in line with the average estimates of analysts surveyed by Bloomberg.

The stock rose as much as 2.2 percent and traded 2 percent higher at 173 kronor as of 11:39 in Stockholm, where Sandvik is based. The shares have gained 37 percent this year.