Sandvik Distributes Proforma Numbers for Sandvik Mining and Rock Technology
January 10, 2020 - Sandvik announced on October 28, 2019 that the agreement to divest the majority of Drilling and Completions (Varel) was signed. As earlier stated, the related write-down impacted the net profit in the fourth quarter of 2019 by -3.9 billion SEK, out of which -4.2 billion SEK impacted operating profit negatively whilst impact on taxes was positive by +0.3 billion SEK.
Related to the ongoing divestment, Varel has been moved out of Sandvik Mining and Rock Technology and is instead reported in Other Operations until expected closure of the deal, during the first quarter of 2020.
In line with the decentralized model, Sandvik has simultaneously re-allocated the lease stock related to mining equipment from Group activities to Sandvik Mining and Rock Technology, hence capital employeed in Sandvik Mining and Rock Technology has increased by about 3 billion SEK on average.
Proforma numbers allow for both the ongoing divestment and the re-allocation of capital employed.
Other Operations, consisting of Varel and items related to previous divestments (Hyperion and Sandvik Process Systems).
*Adjusted for items impacting comparability