SKF Half-year report 2009

SKF Half-year report 2009

Tom Johnstone, President and CEO:
 “We had a very strong cash flow in the quarter and overall a good performance
in light of the difficult business environment. While the decline in demand was
dramatic compared to last year, the sequential trend for the Group shows signs
of levelling off. The manufacturing level was even lower than sales resulting in
a further reduction in our inventories. 
We are already seeing benefits from our cost reduction activities. Additional
activities were announced, which combined with steps already taken will result
in annualized savings of around SEK 800 million from mid next year. 
We expect that the year on year decline in our sales volume in the third quarter
will be slightly less than what we have seen in the first half. The
manufacturing level will continue to run lower than sales.”

	Q2	Q2	YTD	YTD
	2009	2008	2009	2008
Net sales, SEKm	14,167	16,077	29,016	31,673
Operating profit, SEKm	474	2,135	1,242	4,175
Operating margin, %	3.4	13.3	4.3	13.2
Operating margin excl. restructuring %	6.9	13.3	6.6	13.2
Profit before taxes, SEKm	312	1,978	843	3,902
Net profit, SEKm	323	1,369	717	2,665
Basic earnings per share, SEK	0.69	2.95	1.55	5.72

The decrease of 11.9% in net sales for the quarter, in SEK, was attributable to:
volume -30.8%, structure 1.1%, price/mix 5.6% and currency effects 12.2%.
For the first half year, the decrease of 8.4%, in SEK, was attributable to:
volume -28.9%, structure 1.3%, price/mix 6.3% and currency effects 12.9%.

The quarter included expenses for restructuring activities of SEK 500 million of
which around SEK 480 million refer to programmes announced in the second
quarter. For the first half year the expenses amount to around SEK 675 million. 

Outlook for the third quarter of 2009
Compared to last year the demand for SKF products and services is expected to be
significantly lower in the third quarter compared to the third quarter last year
for the Group in total, for all the Divisions and for all regions. 

Compared to the second quarter and adjusted for seasonality, demand is expected
to be relatively unchanged for the SKF Group in total. It is expected to be
lower in Europe, relatively unchanged in North America and slightly higher in
Asia and Latin America. It is expected to be slightly higher for the Automotive
Division, relatively unchanged for the Service Division and slightly lower for
the Industrial Division. 

The manufacturing level will be significantly lower year on year and relatively
unchanged compared to the second quarter.

Göteborg, 14 July 2009 

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	Lars Wedenborn
Board member	Board member	Board member



Peter Grafoner	Joe Loughrey	
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 08.00 (CET) on 15 July 2009.


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