Swedish tool and machinery maker Sandvik eyes growing demand.

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Sandvik, the world’s largest maker of metal- cutting tools, Tuesday posted better-than-expected second-quarter profits and said that demand had improved.

Its net profit amounted to 2 billion kronor ($275 million), up from a loss of 2 billion kronor the same period last year. Order intake swelled by 43 percent to 23.1 billion kronor.

“Demand for Sandvik’s products continued to improve in the second quarter”, the company’s chief executive officer Lars Pettersson said. "Demand from the energy sector remained high and an increase was noted in the automotive, mining and process industries.

He also said that order intake remained strong in Asia and improved in other markets.

Lower cost levels, combined with higher sales and production volumes, a favorable product mix and positive metal price effects are the main reasons for the improved result.

During last year's economic downturn Sandvik's sales dived 30 percent.

"It is satisfying to note that the market situation continued to improve in the second quarter," Lars Pettersson said.