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 engineering group 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 and services for rock-excavation operations, and special steel products. Good pricing power and broad geographic and customer segment diversification further support
