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The mining equipment maker said business development in January and February in most markets had been in line with its expectations.
China was the outlier there, being the first market to feel the effects of the virus.

However, while Sandvik's operations in China are up and running and approaching normal capacity, its other operations are starting to feel the effects.

That has led Sandvik to initiate measures across its entire business to cut costs in both the short-term and long-term.

The initial focus is on short-term activities, reduced worktime, reduction of temporary employees and consultants, and reduced discretionary spend.

The actions primarily related to reduced working hours, will generate savings of about 1.5 billion Swedish kroner (A$250 million) in 2020.

Actions to reduce worktime will mean a temporary negative effect on the compensation for many employees.

Sandvik's group executive management has also decided to reduce their salary by 10% during this period.

The company is also considering structural changes and workforce reductions to adapt to changed market conditions in the longer term.

It estimates its long-term structural measures could bring savings of about 900 million Swedish kroner.

Those measures will reach full annual run-rate by the end of 2021.

Sandvik president and CEO Stefan Widing said the coronavirus situation had escalated globally and the company had to adapt to the dramatic change in global business conditions.

"Divisions within all three business areas are taking prompt action in order to secure our long-term market leading positions and protect our company," he said.

Besides its mining and rock technology division, Sandvik also has a materials technology and a machining solutions division.