SKF Year-end report 2012
GÖTEBORG, Sweden -- January 30, 2013
Tom Johnstone, President and CEO:
”We saw a weak development in our sales in the fourth quarter and particularly
in December due to the uncertain macro situation and inventory reductions in
the market. We reduced our manufacturing and inventories more than planned
going into the quarter which enabled us to deliver a very good cash flow even
if it impacted our result.
For the full year our sales were slightly down in local currencies with growth
in North America and Latin America and lower sales in Europe, Asia and Middle
East and Africa. We significantly reduced inventories in the year and
delivered a very good cash flow, giving us a continued strong financial
At the start of this year we announced actions to accelerate and expand our
activities to significantly reduce cost and strengthen our growth in the
faster developing areas of our business. These are very important steps to
enable us to deliver on our long term growth and profitability targets. We
also announced the acquisition of Blohm + Voss Industries which is an
important addition to our marine business and will further strengthen our
offer to this industry.
The overall macro environment is difficult to read with still a lot of
uncertainty. However, at this point we expect demand in the first quarter for
the Group to continue at the same level as the fourth quarter but still lower
year over year. We plan to run our manufacturing broadly in line with sales in
Key figures Q4 Q4 Full year Full year
2012 2011 2012 2011
Net sales, SEKm 14,984 16,257 64,575 66,216
Operating profit, SEKm 1,227 2,006 7,333 9,612
Operating margin, % 8.2 12.3 11.4 14.5
Profit before taxes, SEKm 995 1,823 6,511 8,932
Net profit, SEKm 1,011 1,205 4,878 6,224
Basic earnings per share, SEK 2.16 2.57 10.37 13.29
The operating profit in the fourth quarter was affected by one-time costs of
around SEK 300 million, of which SEK 200 million was for restructuring and SEK
100 million for impairments and asset write-downs. The full-year results
include one-time costs of SEK 440 million. Excluding these the operating
margin was 10.2% in the fourth quarter and 12.0% for the full year.
Net sales change in SEK, Volume Price/mix Structure Currency Total
attributable to: effect
Q4 2012 -5.9% 0.7% 1.0% -3.6% -7.8%
Full year 2012 -3.9% 1.4% 0.4% -0.4% -2.5%
Sales in the fourth quarter in local currencies and excluding structure
decreased by 7% in Europe, by 11% in Asia and by 9% in Middle East and Africa.
In North America they increased by 2% and in Latin America by 9%.
Manufacturing in the fourth quarter was significantly lower year over year.
Sales for the full year in local currencies and excluding structure decreased
by 5% in Europe, by 10% in Asia and by 2% in Middle East and Africa. In North
America they increased by 7% and in Latin America by 11%.
Manufacturing for the full year was significantly lower year over year.
The Board has decided to propose an unchanged dividend of SEK 5.50 per share
to the Annual General Meeting.
Outlook for the first quarter of 2013
Demand compared to the first quarter 2012
The demand for SKF’s products and services is expected to be lower for the
Group. For Europe it is expected to be significantly lower, for Asia slightly
lower and for North America and Latin America relatively unchanged. The demand
is expected to be lower for Industrial Market, Strategic Industries and SKF
Automotive, for Industrial Market Regional, Sales and Services it is expected
to be slightly lower.
Demand compared to the fourth quarter 2012
The demand for SKF’s products and services is expected to be relatively
unchanged for the Group, for the business areas and for the regions.
Manufacturing is expected to be lower year over year and higher compared to
Gothenburg, 30 January 2013
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 30 January 2013.
A teleconference will be held on 30 January 2013 at 14.30 CET, 13.30 (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 Year-end results 2012 on the IR
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication
systems, and services which include technical support, maintenance and
reliability services, engineering consulting and training. SKF is represented
in more than 130 countries and has around 15,000 distributor locations
worldwide. Annual sales in 2012 were SEK 64,575 million and the number of
employees was 46,775. www.skf.com
® SKF is a registered trademark of the SKF Group. ™ BeyondZero is a trademark
of the SKF Group.
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Further information can be obtained from:
Ingalill Östman, Group Communications
tel: +46-31-3373260, mobile: +46-706-973260
Marita Björk, Investor Relations
tel: +46-31-3371994, mobile: +46-705-181994
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