During March, the uncertainty around the coronavirus situation gradually increased in many parts of the world. Most production units in the Sandvik Group were able to continue operating, however due to government restrictions the production is currently on hold in Italy, India and partially in other regions.
Although Sandvik currently believes that the direct impact on its financial performance during the first quarter will be limited, Sandvik has identified a need to mitigate future effects on their businesses from the rapid spread of the coronavirus.
Sandvik has therefore initiated measures that will be taken across the group and include activities that support savings both short-term and long-term. The initial focus is on short-term activities with quick impact such as reduced worktime, reduction of temporary employees and consultants, and reduced discretionary spend.
“The coronavirus situation has escalated around the world and we have to adapt to this dramatic change in global business conditions. Divisions within all three business areas are taking prompt action in order to secure our long-term market leading positions and protect our company,” says Stefan Widing, President and CEO of Sandvik. The members of the Sandvik Group Executive Management have also decided to reduce their salary by 10 percent during this period.
Courtesy of Sandvik.