* Q4 core profit 3.06 bln SEK vs fcast 3.24 bln
* Order intake down 10 pct, below forecast
* Says cut output further in Q4
* Says market demand in Q4 was on par with Q3
(Adds detail, background)
STOCKHOLM, Jan 29 Swedish machinery and tool
maker Sandvik posted fourth-quarter earnings below
analysts' expectations on Tuesday and said it had cut production
further in the face of sluggish demand.
Sandvik and domestic rival Atlas Copco, which
together supply more than half the global market for underground
mining gear such as drill rigs and crushers, have seen demand
falter in recent months due to global economic uncertainty.
Sandvik said adjusted operating earnings fell to 3.06
billion crowns ($477.2 million) from 3.24 billion a year-ago,
lagging a mean forecast for 3.30 billion in a Reuters poll of
U.S. group Caterpillar this week fuelled optimism about the
underlying economy but forecast its mining gear business, where
it competes with Sandvik and Atlas, would be a drag on group
sales in 2013 as miners cut spending.
Sandvik, which does not issue financial guidance, said group
order intake fell 10 percent stripped of currency swings and
acquisitions to 21.1 billion crowns in the quarter, falling
short of the 21.8 billion seen by analysts.
"Overall demand for Sandvik's products during the fourth
quarter remained largely on par with the third quarter," the
company said in a statement.
"Activity in the aerospace, oil/gas and process industries
remained at reasonably high levels, while the mining,
construction and automotive industries were weak."
In its mining business alone, the group's biggest unit by
sales, order intake fell 5 percent and bookings were down in all
the company's business areas.
($1 = 6.4124 Swedish crowns)
(Reporting by Niklas Pollard and Johannes Hellstrom; Editing by