SKF Nine-month report 2012
GÖTEBORG, Sweden -- October 17, 2012
Tom Johnstone, President and CEO:
“The macro economic development and increasing uncertainty which was evident
during the last few months has clearly influenced our business. Our sales
weakened as we went through the quarter and this was mainly seen in many of
our industrial markets as well as in the European and particularly in the
Asian region. We took additional steps to reduce our production to both meet
this lower demand and to reduce our inventories. With the background of the
challenging market environment the Group delivered a very good performance and
particularly a very strong cash flow. We managed to adjust our cost base in
the quarter and will further increase our actions on this going forward.
In addition we took some important steps to strengthen SKF in supporting the
longer term growth markets and industries. We completed the acquisition of
GBC, which widens our ability to serve our markets. In conjunction with
celebrating 100 years of business in China, we opened our new factory in
Jinan, had the ground breaking for our new warehouse near Shanghai and also
announced a new campus close to Shanghai. We also opened three new SKF
Solution Factories, in USA, Romania and Italy.
For the Group overall we expect the weaker demand trend to continue in the
fourth quarter and demand to be lower year over year. We will run our
production below sales to enable us to reduce our inventories and to support
our cash flow.”
Key figures Q3 2012 Q3 2011 YTD 2012 YTD 2011
Net sales, SEKm 15,486 16,545 49,591 49,959
Operating profit, SEKm 1,913 2,479 6,106 7,606
Operating margin, % 12.4 15.0 12.3 15.2
Profit before taxes, SEKm 1,734 2,345 5,516 7,109
Net profit, SEKm 1,266 1,656 3,867 5,019
Basic earnings per share, SEK 2.71 3.52 8.22 10.72
Net sales change in SEK, Volume Price/mix Structure Currency Total
attributable to: effect
Q3 2012 -5.0% 0.5% 0.8% -2.7% -6.4%
Year to date 2012 -3.0% 1.4% 0.2% 0.6% -0.8%
Sales for the Group in the third quarter were lower year over year (in local
currency excluding structure). In Europe they decreased by 7% and in Asia by
11%. In North America they increased by 5% and in Latin America by 8%. In
Middle East and Africa they were relatively unchanged.
Manufacturing in the third quarter was significantly lower year over year.
Outlook for the fourth quarter of 2012
Demand compared to the fourth quarter last year
The demand for SKF’s products and services is expected to be lower for the
Group and for Europe. For Asia it is expected to be slightly lower and for
North America and Latin America relatively unchanged. The demand is expected
to be lower for Industrial Strategic Industries and Industrial Regional Sales
and Service and relatively unchanged for Automotive.
Demand compared to the third quarter 2012
The demand for SKF’s products and services is expected to be slightly lower
for the Group, for all the business areas and for Europe, Asia and North
America. For Latin America demand is expected to be relatively unchanged.
Manufacturing is expected to be lower year on year and slightly lower compared
to third quarter.
Gothenburg, 17 October 2012
President and CEO
AB SKF is required to disclose the information provided herein pursuant to the
Markets Act and/or the Financial Instruments Trading Act. The information was
for publication at 13.00 on 17 October 2012.
A teleconference will be held on 17 October 2012 at 14.00 CET, 13.00 (UK),
SE: +46 (0)8 506 307 79
UK: +44 (0)844 571 8957
US: +1 866 682 8490
You will find all information regarding SKF Nine-month results 2012 on the IR
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication
systems, and service which include technical support, maintenance and
reliability services, engineering consulting and training. SKF is represented
in more than 130 countries and has 15,000 distributor locations worldwide.
Annual sales in 2011 were SEK 66,216 million and the number of employees was
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