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 and relatively high degree of vertical integration, resulting in volatile operating margins and cash flow. Good underlying cash generation. Volatility in free operating cash flow (FOCF) generation. Relatively high (adjusted) debt levels. A fairly shareholder-friendly dividend policy. The stable outlook on Sweden-based engineering group, Sandvik AB, takes into account Standard&Poor's Ratings Services' forecast that the company's credit measures will improve further over the next two years, despite moderating demand across the group's end markets. It also reflects the company's ongoing cost-cutting efforts, strong cash flow generation, and further
