SKF First-quarter report 2007

SKF reports record sales and profit for the first quarter of 2007. Operating profit increased by 17.2% and sales were up 8.1%. Basic earnings per share increased by 4.9%. The outlook is for continued good volume growth for the second quarter of 2007.

• Net sales for the first quarter of 2007 were SEK 14,371 million (13,289).

• Operating profit for the first quarter was SEK 1,886 million (1,609). The operating margin for the first quarter was 13.1% (12.1).

• Profit before taxes for the first quarter was SEK 1,825 million (1,599).

• Net profit for the first quarter was SEK 1,214 million (1,138).

• Basic earnings per share for the first quarter were SEK 2.57 (2.45). Diluted earnings per share for the first quarter were SEK 2.56 (2.44).

The increase of 8.1% in net sales for the quarter, in SEK, was attributable to:
volume 7.9%, structure 4.0%, price/mix 1.8% and currency effects -5.6%.

Sales development in the first quarter (excl. structural effects)
Sales in the first quarter of 2007, calculated in local currencies and compared to sales in the same quarter last year, were significantly higher for the Group and for each of the divisions. Sales were significantly higher in Europe and Asia. Sales in North America were relatively unchanged and sales in Latin America were higher.

The manufacturing level for the first quarter was higher compared to the fourth quarter 2006 and significantly higher compared to the first quarter last year.

Outlook for the second quarter of 2007 (compared to the first quarter 2007)
The market demand for SKF's products and services in the second quarter of 2007 is expected to be higher for the Group. The demand is expected to be higher in Europe and Latin America, significantly higher in Asia and relatively unchanged in North America. The demand is expected to be higher in the Industrial and Service Division and slightly higher in the Automotive Division.

The manufacturing level for the second quarter will be unchanged compared to the first quarter 2007 and significantly higher compared to the second quarter last year.


Further information can be obtained from:
Lars G Malmer, Group Communication, tel: +46-31-3371541, +46-705-371541, e-mail: lars.g.malmer@skf.com
Marita Björk, Investor Relations, tel: +46-31-3371994, +46-705-181994, e-mail: marita.bjork@skf.com