World-leading position in core businesses. High-quality products and technological leadership. Diversified production and sales, including an increasing share of service and aftermarket sales. Cyclical demand patterns for the company's products. Relatively high debt. High operating leverage resulting in volatile operating margins and cash flow. The ratings on Sweden-based tool and mining equipment manufacturer Sandvik AB are supported by the company's satisfactory business risk profile, which reflects its world-leading position as a cemented-carbide tool supplier to the metalworking industry. The company also has strong positions in other niches, such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. Good pricing power and broad geographic and customer segment diversification further support the ratings. Standard & Poor's Ratings...
Companies mentioned in this report are:
- Sandvik AB
- Kennametal Inc.
- SKF AB
- Industrivarden AB
- Metso Corp.
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