Sandvik implements the final phase of the supply chain optimization program and makes further right-sizing as well as impairments

Results for the fourth quarter of 2015 will be impacted by non-recurring charges totaling 1,550 million SEK, out of which 552 million SEK impact cash flow.

“The total supply chain optimization program will reduce the number of production units by 23, in line with the original target for continuing operations. We will achieve significant efficiency improvements as a result of the reduction in the cost base over time,” says Björn Rosengren, Sandvik’s President and CEO.

“The additional right sizing measures are structural and taken to improve internal efficiency long term, hence do not reflect any recent change in the market environment. Impairment losses are primarily related to weaker than expected performance in parts of Sandvik’s operations in China.”

Due to a review of Sandvik Mining’s supply chain optimization program phase two, Sandvik releases cost provisions of 169 million SEK. The targeted savings for the total supply chain optimization program are 1.3 billion SEK for continuing operations.