Shares of the Swedish company were down 3.3% at 1032 GMT.
Sandvik, among the first of the Nordic industrials to report quarterly results, is considered a reliable indicator of demand given its broad customer base.
Quarterly order intake excluding acquisitions rose 2% to 43.6 billion Swedish crowns ($4.1 billion), driven by solid demand in the mining and software businesses despite challenges in other segments.
“The softer demand was broad-based, but most negative in Europe, and the low demand from the automotive industry notable in all regions,” CEO Stefan Widing said in a statement.
J.P.Morgan analysts said the results missed expectations across key metrics, hit by tough demand environment especially in Sandvik’s cutting tools and infrastructure units, while mining remained solid.
“The earlier hoped for improvement in markets condition has clearly not come through,” they wrote in a note to clients.
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