SKF Half-year report 2011
Tom Johnstone, President and CEO:
“Demand developed very much in line with our expectations during the quarter and this, combined with the actions we are taking, enabled us to deliver a record operating profit and operating margin as well as a good cash flow. Our sales in local currencies developed positively in all regions and divisions. As planned we have increased the investments in our business to support our long-term initiatives and financial targets.
Despite the increased uncertainty in the market we expect a good demand development for the Group in the third quarter, excluding the normal seasonality impact. We will continue to invest in our business and take the necessary steps to offset the high raw material costs and currency headwinds.”
| Q2 | Q2 | YTD | YTD | |
| Key figures | 2011 | 2010 | 2011 | 2010 |
| Net sales, SEKm | 16,712 | 15,709 | 33,414 | 30,155 |
| Operating profit, SEKm | 2,623 | 2,239 | 5,127 | 3,941 |
| Operating margin, % | 15.7 | 14.3 | 15.3 | 13.1 |
| Profit before taxes, SEKm | 2,446 | 2,047 | 4,764 | 3,551 |
| Net profit, SEKm | 1,743 | 1,451 | 3,363 | 2,521 |
| Basic earnings per share, SEK | 3.76 | 3.09 | 7.20 | 5.36 |
| Net sales change in SEK, attributable to: | Volume | Price/mix | Structure | Currency effect | Total |
| Q2 | 12.6% | 1.6% | 4.4% | -12.2% | 6.4% |
| Half year | 16.1% | 1.5% | 4.7% | -11.5% | 10.8% |
Sales in local currency in the second quarter compared to the same period last year (excl. structure)
Sales for the Group were significantly higher and increased by 14.2%. In Europe they increased by 14.0%, in North America by 15.8%, in Asia by 16.9% and in the Middle East andAfricaby 12.2%. InLatin Americasales increased by only 2.9%, affected by the introduction of a new warehousing operation.
The manufacturing level was significantly higher than in the second quarter last year.
Outlook for the third quarter of 2011
Demand compared to the third quarter last year
The demand for SKF’s products and services is expected to be significantly higher for the Group as well as for Asia and Latin America. For Europe and North America it is expected to be higher. It will be significantly higher for the Industrial Division and for the Service Division and higher for the Automotive Division.
Demand compared to the second quarter 2011 and adjusted for normal seasonality
The demand for SKF’s products and services is expected to be slightly higher for the Group as well as for North America. It is expected to be relatively unchanged for Europe, higher in Asia and significantly higher in Latin America. For the Industrial Division and the Service Division it is expected to be slightly higher and for the Automotive Division relatively unchanged.
Manufacturing level
The manufacturing level will be significantly higher year on year and relatively unchanged compared to the second quarter, adjusted for normal seasonality.
Gothenburg, 14 July 2011
Aktiebolaget SKF
(publ.)
Tom Johnstone
President and CEO
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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 15 July 2011.
_____________________________________________________________
A teleconference, ref.no. 898774, will be held on 15 July 2011 at 09.00 CET, 08.00 (UK):
SE: +46 (0)8 5052 0110
UK: +44 (0)207 162 0077
You will find all information regarding SKF Half-year results 2011 on the IR website.
investors.skf.com/quarterlyreporting
Further information can be obtained from:
Ingalill Östman, Group Communications
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