SKF First-quarter report 2012

Tom Johnstone, President and CEO:
“The SKF Group delivered a very good result
and cash flow in the quarter, in line with our expectations. As planned we took
steps to reduce inventories and ran production significantly lower than sales.
From a sales viewpoint we saw a very different development between the regions.
There was very strong growth in both North America and Latin America and this
was quite broad based across many of the industries we serve. In Europe our
industrial businesses developed well while the automotive business as expected
was significantly down. In Asia we had a weak development, but the trend
improved during the quarter and we expect that to continue.
During the quarter
we took a number of important steps to strengthen the Group. We signed an
agreement to acquire General Bearings Corporation and expect to finalize it in
the second quarter. We opened our two new University Technical Centres in
Sweden, launched a number of new products and gained some important new
business. We also introduced a new organisation to better serve the industrial
market through a more industry focussed structure and a full asset life cycle
approach.
Looking at the second quarter we see an improving business
environment for the Group and expect sales to be slightly up both sequentially
and year on year. Again the main growth will be in the Americas but we also
expect a continued improvement in Asia and a stable development in Europe. All
three Business Areas are expected to show sequential growth.”

Key figures
Q1 2012  Q1 2011
Net sales, SEKm                16,931   16,702
Operating
profit, SEKm         2,140    2,504
Operating margin, %            12.6
15.0
Profit before taxes, SEKm      1,981    2,318
Net profit, SEKm
1,341    1,620
Basic earnings per share, SEK  2.84     3.44

Net sales change
in  Volume  Price/mix  Structure  Currency effect  Total
SEK,
attributable
to:
Q1 2012              -0.8%   1.9%       -0.1%      0.4%
1.4%

Sales in local currency in the first quarter compared to the same period
last year (excl. structure)
Sales for the Group increased by 1.1%. In Europe
they decreased by 1.2% and in Asia by 8.1%. In North America they increased by
14.7 %, in Latin America by 11.1% and in Middle East and Africa by 2.5%.
The
manufacturing level was significantly lower than in the first quarter last
year.

Outlook for the second quarter of 2012
Demand compared to the second
quarter last year
The demand for SKF’s products and services is expected to be
slightly higher for the Group. It is expected to be relatively unchanged in
Europe and Asia, and significantly higher in North America and Latin America.
The demand is expected to be slightly higher for Strategic Industries and
Regional Sales and Service and relatively unchanged for the Automotive.
Demand
compared to the first quarter 2012
The demand for SKF’s products and services
is expected to be slightly higher for the Group. It is expected to be relatively
unchanged in Europe, slightly higher in North America and higher in Asia and
Latin America. The demand is expected to be slightly higher for all business
areas.
Manufacturing level
The manufacturing level is expected to be lower
year on year but higher compared to the first quarter.

 
Gothenburg, 19
April 2012
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
2012.
_____________________________________________________________

A
teleconference, ref.no. 915230, will be held on 19 April 2012 at 09.00 CET,
08.00 (UK):
SE: +46 (0)8 5052 0114
UK: +44 (0)207 162 0177

You will find
all information regarding SKF First-quarter results 2012 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