SKF - First-quarter report 2011


SKF - First-quarter report 2011

Tom Johnstone, President and CEO:

“The SKF Group has had a strong start to the year with records in sales,
operating profit and operating margin and a good cash flow. We saw a
very positive sales development in all regions and divisions with a
similar demand pattern as at the end of last year. The steps which we
have taken to reduce our cost base and to offset the higher raw material
costs are clearly seen in the operating result of the Group. The
integration of Lincoln Industrial into the SKF Group and the development
of our total lubrication systems business is going according to plan.

During the quarter we saw no real impact in terms of demand or supply
from the terrible tragedy in Japan. However we do expect to see some
negative effect in the second quarter primarily in our sales to the car
industry although this is very difficult to quantify. We do not see any
material impact at this stage on demand in other segments of our
business so we expect demand in total to be slightly higher sequentially
for the Group. We will continue to work on our initiatives to strengthen
the Group going forward and to invest in our business to support our
long-term financial targets.” 

  

                                         Q1      Q1
                                         2011    2010
Net sales, SEKm                          16,702  14,446
Operating profit, SEKm                   2,504   1,702
Operating margin, %                      15.0    11.8
Operating margin excl. one-off items, %  15.0    12.4
Profit before taxes, SEKm                2,318   1,504
Net profit, SEKm                         1,620   1,070
Basic earnings per share, SEK            3.44    2.27

The increase of 15.6% in net sales for the quarter, in SEK, was
attributable to: volume 20.1%, structure 5.0%, price/mix 1.3% and
currency effects -10.8%.

Outlook for the second quarter of 2011

Demand compared to the second quarter last year

The demand for SKF products and services is expected to be significantly
higher for the Group and all geographical regions. It will be
significantly higher for Industrial Division and the Service Division
and slightly higher for Automotive Division.

Demand compared to the first quarter 2011
The demand is expected to be slightly higher for the Group, higher in
Asia and Latin America, slightly higher in North America and relatively
unchanged in Europe. The Industrial Division and the Service Division
are expected to be slightly higher and the Automotive Division
relatively unchanged.

Manufacturing level

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

Gothenburg, 19 April 2011

Aktiebolaget SKF
(publ.)

 

Tom Johnstone                                         
President and CEO

 

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 19 April
2011.

 

Further information can be obtained from:
Ingalill Östman, Group Communication
tel: +46-31-3373260, mobile: +46-706-973260, e-mail:
ingalill.ostman@skf.com (ingalill.ostman@skf.com)
Marita Björk, Investor Relations
tel: +46-31-3371994, mobile: +46-705-181994, e-mail:
marita.bjork@skf.com (marita.bjork@skf.com)

 

Attachments

04182226.pdf