SKF Nine-month report 2011
Tom Johnstone, President and CEO:
“This was another very good quarter from the SKF Group with a strong development in our sales and operating profit and with a good cash flow. We took additional steps to further strengthen SKF such as the launch of a number of new products and the opening of a new factory inChina. The political and financial turbulence had little impact on our sales in the quarter with the main effects being seen in our sales to the car industry. However, the major decline in demand in the wind energy market in China affected our sales in the Asian region.
As you would expect there is uncertainty in the demand outlook. However, as we see it just now for the fourth quarter most of the industrial markets will still perform well while we expect to see weaker demand in the car, truck, railway and wind energy markets. From a Group viewpoint this means that we expect to see demand at a similar level as last year but somewhat slowing sequentially. At the end of the third quarter we started to reduce our manufacturing and this will be further reduced in the fourth quarter.”
| Q3 | Q3 | YTD | YTD | |
| Key figures | 2011 | 2010 | 2011 | 2010 |
| Net sales, SEKm | 16,545 | 15,465 | 49,959 | 45,620 |
| Operating profit, SEKm | 2,479 | 2,309 | 7,606 | 6,250 |
| Operating margin, % | 15.0 | 14.9 | 15.2 | 13.7 |
| Profit before taxes, SEKm | 2,345 | 1,950 | 7,109 | 5,501 |
| Net profit, SEKm | 1,656 | 1,425 | 5,019 | 3,946 |
| Basic earnings per share, SEK | 3.52 | 3.05 | 10.72 | 8.41 |
| Net sales change in SEK, attributable to: | Volume | Price/mix | Structure | Currency effect | Total |
| Q3 2011 | 6.2% | 2.0% | 5.1% | -6.3% | 7.0% |
| YTD 2011 | 12.8% | 1.6% | 4.8% | -9.7% | 9.5% |
Sales in local currency in the third quarter compared to the same period last year (excl. structure)
Sales for the Group increased by 8.2 %. In Europe they increased by 9.7%, in North America by 9.9%, in Latin America by 10.2%, in Asia by 4.9% and in the Middle East and Africa they were unchanged.
The manufacturing level was higher than in the third quarter last year.
Outlook for the fourth quarter of 2011
Demand compared to the fourth quarter last year
The demand for SKF’s products and services is expected to be relatively unchanged for the Group. It is expected to be slightly lower in Europe, relatively unchanged in North America and slightly higher in Asia and Latin America. The demand is expected to be slightly higher for the Industrial Division, higher for the Service Division and lower for the Automotive Division.
Demand compared to the third quarter 2011
The demand for SKF’s products and services is expected to be slightly lower for the Group. It is expected to be slightly lower for Europe, relatively unchanged for Asia and North America, and slightly higher for Latin America. The demand is expected to be relatively unchanged for the Industrial Division and the Service Division, and slightly lower for the Automotive Division.
Manufacturing level
The manufacturing level is expected to be lower year on year and compared to the third quarter.
Gothenburg, 19 October 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 12.00 on 19 October 2011.
____________________________________________________
A teleconference, ref.no. 904663, will be held on 19 October 2011 at 14.00 CET, 13.00 (UK), 08.00 a.m. (US Eastern Standard Time):
SE: +46 (0)8 5052 0114
UK: +44 (0)207 162 0177
US: +1 334 323 6203
You will find all information regarding SKF Nine-month 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