SKF Half-year report 2008

Record profit and sales, both for the second quarter and first half of 2008. Outlook is for good volume growth for the third quarter of 2008.

• Net sales for the second quarter of 2008 were SEK 16,077 m (14,963), and for the first half year SEK 31,673 m (29,334).

• Operating profit for the second quarter was SEK 2,135 m (2,019), and for the first half year SEK 4,175 m (3,905). The operating margin for the second quarter was 13.3% (13.5), and for the first half year 13.2% (13.3).

• Profit before taxes for the second quarter was SEK 1,978 m (1,957), and for the first half year SEK 3,902 m (3,782).

• Net profit for the second quarter was SEK 1,369 m (1,274), and for the first half year SEK 2,665 m (2,488).

• Basic earnings per share for the second quarter were SEK 2.95 (2.71), and for the first half year SEK 5.72 (5.28). Diluted earnings per share for the second quarter were SEK 2.94 (2.70), and for the first half year SEK 5.71 (5.26).

The increase of 7.4% in net sales for the quarter, in SEK, was attributable to:
volume 6.2%, structure 1.3%, price/mix 4.0% and currency effects -4.1%.
For the first half year, the increase of 8.0%, in SEK, was attributable to:
volume 5.6%, structure 1.2%, price/mix 3.9% and currency effects -2.7%.

Development in the second quarter 2008
(calculated in local currencies excl. structural effects and compared to the same period last year)
Sales were significantly higher for the Group in total and were significantly higher in Europe, Asia and Latin America. Sales in North America were relatively unchanged. For the Industrial Division and the Service Division sales were significantly higher and for the Automotive Division they were higher.

The manufacturing level for the second quarter of 2008 was slightly higher compared to the first quarter 2008 and higher compared to the second quarter last year.

Outlook for the third quarter of 2008
(compared to the second quarter 2008 and adjusted for seasonality)
The market demand for SKF’s products and services in the third quarter of 2008 is expected to be higher for the Group. The demand is expected to be higher in Europe, slightly lower in North America and significantly higher in both Asia and Latin America. The demand is expected to be higher in the Industrial Division and the Service Division and relatively unchanged for the Automotive Division.

The manufacturing level for the third quarter 2008 will be unchanged compared to the second quarter 2008, and slightly higher than the third quarter 2007.



The Board of Directors and the CEO declare that the half-year report gives a fair view of the performance of the business, position and profit or loss of the company and the Group, and describes the principal risks and uncertainties that the company and the companies in the Group face.

Göteborg, 14 July 2008
Aktiebolaget SKF
(publ.)


Tom Johnstone
President and CEO, Board member


Leif Östling Vito H Baumgartner Ulla Litzén
Chairman Board member Board member


Clas Åke Hedström Winnie Fok Hans-Olov Olsson
Board member Board member Board member


Lena Treschow Torell Lars Wedenborn Peter Grafoner
Board member Board member Board member


Lennart Larsson Kennet Carlsson
Board member Board member

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AB SKF may be required to disclose the information provided herein according to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 am on 15 July 2008.

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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

Aktiebolaget SKF, SE-415 50 Göteborg, Sweden, Company reg.no. 556007-3495,
tel: +46-31-3371000, fax: +46-31-3372832, www.skf.com