Summary: Sandvik AB Dec 11

Standard & Poors, December 2011

Abstract
The ratings on Sweden-based tool and mining equipment manufacturer Sandvik AB are supported by Standard & Poor's Ratings Services' view of 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. The ratings on Sandvik also take into account its exposure to cyclical demand, and a relatively high vertical integration resulting in significant volatility in operating margins. Our assessment of the "intermediate" financial risk profile reflects the company's good underlying cash generation,...

Companies mentioned in this report are: Sandvik AB
Action: Review

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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

Sandvik AB

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