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
_____________________________________________________________
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
(http://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 (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)
SKF Nine-month report 2011
| Source: SKF, AB
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