SKF Half-year report 2010
Tom Johnstone, President and CEO:
"Our sales developed positively in the quarter driven primarily by a continued strong automotive business and an improvement in the industrial business. The very good sales development and higher manufacturing level combined with the cost reduction activities undertaken resulted in a strong result for the SKF Group, a record in terms of operating profit and operating margin.
In the third quarter we expect a continued good level of sales for the Group being significantly higher than last year. All regions and divisions will see good growth even if we expect lower sales to the car industry in Europe. Manufacturing will be kept at the same level as the second quarter which means it will be significantly higher than last year.”
| Q2 | Q2 | YTD | YTD | |
| 2010 | 2009 | 2010 | 2009 | |
| Net sales, SEKm | 15,709 | 14,167 | 30,155 | 29,016 |
| Operating profit, SEKm | 2,239 | 474 | 3,941 | 1,242 |
| Operating margin, % | 14.3 | 3.4 | 13.1 | 4.3 |
| Operating margin excl. restructuring, % | 14.3 | 6.9 | 13.4 | 6.6 |
| Profit before taxes, SEKm | 2,047 | 312 | 3,551 | 843 |
| Net profit, SEKm | 1,451 | 323 | 2,521 | 717 |
| Basic earnings per share, SEK | 3.09 | 0.69 | 5.36 | 1.55 |
The increase of 10.9% in net sales for the quarter, in SEK, was attributable to:
volume 16.6%, price/mix -0.5% and currency effects -5.2%.
For the first half year, the increase of 3.9%, in SEK, was attributable to:
volume 10.8%, price/mix -0.4% and currency effects -6.5%.
Outlook for the third quarter of 2010
Development compared to third quarter last year
The demand for SKF products and services is expected to be significantly higher for the Group, the divisions and for the different geographical areas.
Development compared to the second quarter 2010 and adjusted for normal seasonality
The demand is expected to be slightly higher for the SKF Group in total. It is expected to be unchanged in Europe, slightly higher in North America and higher in Asia and Latin America. For the Automotive Division it is expected to be relatively unchanged and for the Industrial Division and Service Division it is expected to be slightly higher.
Manufacturing level
The manufacturing level will be significantly higher year on year and relatively unchanged compared to the second quarter, adjusted for normal seasonality.
Göteborg, 14 July 2010
Aktiebolaget SKF
(publ.)
Tom Johnstone
President and CEO, Board member
Leif Östling Ulla Litzén Winnie Fok Chairman Board member Board member
Hans-Olov Olsson Lena Treschow Torell Peter Grafoner
Board member Board member Board member
Lars Wedenborn Joe Loughrey Jouko Karvinen
Board member Board member Board member
Lennart Larsson Kennet Carlsson
Board member Board member
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 8.00 (CEST) on 15 July 2010.
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, 415 50 Göteborg, tel: 031 337 1000, fax 031 337 1722, www.skf.com