SKF Year-end report 2009

SKF Year-end report 2009

Tom Johnstone, President and CEO:
“SKF delivered a strong cash flow in the quarter and a record cash flow for the
year. Our operating margin was 7.2% in the quarter, supported by the major cost
reduction activities in the operations. Demand for the Group improved slightly
in the quarter but was still significantly lower than a year ago. Additional
steps were taken to further adapt our manufacturing structure and costs towards
a lower level of demand. Going forward into 2010 we see a slightly higher demand
in the first quarter both sequentially and compared to the first quarter 2009.
However, as the demand outlook is still uncertain we will continue to adapt our
cost structure while stepping up our activities in the faster growing areas of
our business and in developing new environmental offerings.”


Q4	Q4	YTD	YTD
	2009	2008	2009	2008
Net sales, SEKm	13,887	16,307	56,227	63,361
Operating profit, SEKm	1,004	1,450	3,203	7,710
Operating margin, %	7.2%	8.9%	5.7%	12.2%
Operating margin excl. restructuring, %	10.1%	11.0%	8.0%	12.7%
Profit before taxes, SEKm	765	1,107	2,297	6,868
Net profit, SEKm	505	819	1,705	4,741
Basic earnings per share, SEK	1.05	1.75	3.61	10.14

The decrease of 14.8% in net sales for the quarter, in SEK, was attributable to:
volume -14.1%, structure 0.4%, price/mix 0.3% and currency effects -1.4%.
For the full year, the decrease of 11.3%, in SEK, was attributable to:
volume -24.3%, structure 1.0%, price/mix 4.3% and currency effects 7.7%.

The quarter included expenses for restructuring activities of around SEK 400
million, of which around SEK 350 million refer to programmes announced in the
fourth quarter. For the full year the expenses amount to around SEK 1,275
million, of which around SEK 135 million are write downs and impairments.

The Board has decided to propose to the Annual General Meeting a dividend of SEK
3.50 (3.50) per share.  

Outlook for the first quarter of 2010
Sales development compared to first quarter last year
The demand for SKF products and services is expected to be slightly higher for
the Group in total. In Europe and North America it is expected to be slightly
lower and in Asia and Latin America significantly higher. It is expected to be
significantly lower for the Industrial Division, slightly higher for the Service
Division and significantly higher for the Automotive Division.

Sales development compared to the fourth quarter 2009
The demand is expected to be slightly higher for the SKF Group in total. It is
expected to be slightly higher in Europe, Asia and Latin America, and relatively
unchanged in North America. For the Industrial Division it is expected to be
relatively unchanged, and slightly higher for both the Service Division and
Automotive Division.

Manufacturing level
The manufacturing level will be higher year on year and slightly higher compared
to the fourth quarter 2009.


Göteborg, 28 January 2010 


Aktiebolaget SKF
(publ.)



Tom Johnstone	
President and CEO




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 12.00 pm (CET) on 28 January 2010.



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