The ratings on Sandvik AB reflect the company's world-leading position as a cemented-carbide tool supplier to the metalworking industry, as well as its strong financial profile. Sandvik holds strong positions in other niches such as tooling systems for metalworking applications, products for rock-excavation operations, and special steel products. At March 31, 2006, Sandvik had net interest-bearing debt (excluding post-retirement liabilities) of about Swedish krona (Skr) 15.1 billion ($2.07 billion). Sandvik's position in the industries that it serves is based on a strong technological base; high-quality products with superior customer value; and an efficient distribution network, with a large proportion of sales made directly to the end-user. Overall demand cyclicality is following the international mining and engineering industries' business cycles. Cyclicality
