SKF - First-quarter report 2011
Tom Johnstone, President and CEO:
“The SKF Group has had a strong start to the year with records in sales, operating profit and operating margin and a good cash flow. We saw a very positive sales development in all regions and divisions with a similar demand pattern as at the end of last year. The steps which we have taken to reduce our cost base and to offset the higher raw material costs are clearly seen in the operating result of the Group. The integration of Lincoln Industrial into the SKF Group and the development of our total lubrication systems business is going according to plan.
During the quarter we saw no real impact in terms of demand or supply from the terrible tragedy in Japan. However we do expect to see some negative effect in the second quarter primarily in our sales to the car industry although this is very difficult to quantify. We do not see any material impact at this stage on demand in other segments of our business so we expect demand in total to be slightly higher sequentially for the Group. We will continue to work on our initiatives to strengthen the Group going forward and to invest in our business to support our long-term financial targets.”
| Q1 | Q1 | |
| 2011 | 2010 | |
| Net sales, SEKm | 16,702 | 14,446 |
| Operating profit, SEKm | 2,504 | 1,702 |
| Operating margin, % | 15.0 | 11.8 |
| Operating margin excl. one-off items, % | 15.0 | 12.4 |
| Profit before taxes, SEKm | 2,318 | 1,504 |
| Net profit, SEKm | 1,620 | 1,070 |
| Basic earnings per share, SEK | 3.44 | 2.27 |
The increase of 15.6% in net sales for the quarter, in SEK, was attributable to: volume 20.1%, structure 5.0%, price/mix 1.3% and currency effects -10.8%.
Outlook for the second quarter of 2011
Demand compared to the second quarter last year
The demand for SKF products and services is expected to be significantly higher for the Group and all geographical regions. It will be significantly higher for Industrial Division and the Service Division and slightly higher for Automotive Division.
Demand compared to the first quarter 2011
The demand is expected to be slightly higher for the Group, higher in Asia and Latin America, slightly higher in North America and relatively unchanged in Europe. The Industrial Division and the Service Division are expected to be slightly higher and the Automotive Division relatively unchanged.
Manufacturing level
The manufacturing level will be significantly higher year on year and relatively unchanged compared to the first quarter.
Gothenburg, 19 April 2011
Aktiebolaget SKF
(publ.)
Tom Johnstone
President and CEO
AB SKF is required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 on 19 April 2011.
Further information can be obtained from:
Ingalill Östman, Group Communication
tel: +46-31-3373260, mobile: +46-706-973260, e-mail: ingalill.ostman@skf.com
Marita Björk, Investor Relations
tel: +46-31-3371994, mobile: +46-705-181994, e-mail: marita.bjork@skf.com