Sandvik CEO Aims to Fix Stragglers to Reach New Profit Target
- Company targets for annual Ebit growth of 7% in 2016-2018
- CEO Rosengren expects no help from challenging end-markets
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Sandvik AB, the world’s largest cutting-tool maker, aims to fix under-performing businesses by giving their management teams more responsibility rather than contemplate disposals for now.
Sandvik will keep the Varel unit, which makes drilling products for the oil-and-gas sector, while the product area that makes mobile crushers for the construction industry will be given one year to improve profitability, Chief Executive Officer Bjoern Rosengren said at the company’s capital markets day in Sandviken, Sweden.