- Oops!Something went wrong.Please try again later.
STOCKHOLM (Reuters) - Sweden's Sandvik said on Wednesday it had set new financial targets for its business segment Manufacturing Solutions, lifting the unit's goal for sales in the wake of several recent acquisitions.
The world's biggest maker of metal-cutting tools said it was lifting the unit's revenue target for 2025 to 6 billion crowns ($689.35 million) from 4 billion previously. The unit recorded sales of around 800 million crowns in 2020.
Sandvik has recently announced several acquisitions, including Cambrio, DWFritz Automation, and, earlier on Wednesday, CNC Software.
"I am very pleased that we have managed to accelerate the M&A activities in Sandvik Manufacturing Solutions which means that we can update our target less than a year after it was set," Chief Executive Stefan Widing said in a statement.
Sandvik said Manufacturing Solutions, which reports within business area Sandvik Manufacturing and Machining Solutions, was also aiming at an operating margin (EBITA) of 20% by 2025.
It added that the group target of revenue growth of at least 5% through a business cycle, organically and through acquisitions, remained unchanged.
Sandvik shares rose 2.5% at 1345 GMT.
($1 = 8.7038 Swedish crowns)
(Reporting by Helena Soderpalm; editing by Niklas Pollard)