Sandvik’s updated cost measures and savings

Sandvik has initiated measures across the group to mitigate effects from the Covid-19 pandemic, with actions supporting savings both short-term and long-term. Sandvik has provided an update on the current status of the cost measures and savings. 

Temporary short-term actions are progressing according to plan and are expected to generate savings of about 1.5 billion SEK in 2020. Savings from long-term measures, both structural and volume driven, of about 1.2 billion SEK will reach full annual run-rate by the end of 2021. 
“In this continued uncertain environment we need to adapt to secure our long-term market leading positions. I am pleased to see that our savings initiatives are progressing well and that we are somewhat ahead of the previously communicated long-term savings estimate,” says Stefan Widing, President and CEO of Sandvik. 

These measures are in addition to the announced measures in January, which impacted the operating result during the first quarter of 2020 by -364 million SEK and with estimated net savings of about 110 million SEK, with full run-rate by mid-2021. 

Courtesy of Sandvik. 
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