SKF First-Quarter Report 2013

  SKF First-Quarter Report 2013

Business Wire

GÖTEBORG, Sweden -- April 17, 2013

Regulatory News:

SKF (STO:SKFB) (STO:SKFA) (LSE:SKFB) (Pink Sheets:SKFRY):

Tom Johnstone, President and CEO: “SKF delivered a good solid performance in
the quarter despite sales being lower than expected and significantly lower
than the record sales in the first quarter last year. The steps which we are
taking to adjust our cost base are giving results as can be seen by the
positive sequential margin development. There is continued uncertainty and
cautiousness in the market place and this impacted our sales more than
expected especially in our industrial businesses and in North America. The
acquisition of Blohm + Voss Industries was completed in the first quarter and
will strengthen our position in the marine industry. In April at the Hannover
Fair we launched a number of new solutions such as SKF Insight™, the new
wireless and self powered monitoring sensor and solution, which will enable us
to even better help our customers improve performance, reduce downtime and
cost. Going forward, it is not easy to give a demand outlook due to all the
mixed signals in the economy. However, while demand in the second quarter is
expected to be unchanged sequentially and lower year on year I feel that as we
go through the quarter we will start to see a slowly improving business.”

Key figures              Q1 2013  Q1 2012                      
Net sales, SEKm           15,152    16,931
Operating profit, SEKm    1,480     2,136
Operating margin, %       9.8       12.6
Operating margin
excluding one-off         11.4      12.6
costs, %
Profit before taxes,      1,237     1,956
SEKm
Net profit, SEKm          818       1,326
Basic earnings per        1.74      2.81
share, SEK
                                                                             
The operating profit was affected by one-off costs of around SEK 250
million.
                                                                             
Net sales change y-o-y,   Volume    Price/    Structure   Currency   Total
in SEK,attributable to:
                                    mix                   effect
Q1 2013                   -8.70%    0.70%     1.50%       -4.00%     -10.50%
                                                                             

Sales in the first quarter in local currencies and excluding structure
decreased by 10% both in Europe and North America, by 7% in Asia and by 6% in
Middle East and Africa. In Latin America they increased by 8%. Manufacturing
in the first quarter was lower year over year.

Outlook for the second quarter of 2013

Demand compared to the second quarter 2012

The demand for SKF’s products and services is expected to be lower for the
Group and for Europe. It is expected to be relatively unchanged for Asia and
North America and slightly higher for Latin America. The demand is expected to
be lower for Industrial Market, Strategic Industries and Industrial Market,
Regional Sales and Service and slightly lower for SKF Automotive.

Demand compared to the first quarter 2013

The demand for SKF’s products and services is expected to be relatively
unchanged for the Group, for Europe, Asia and North America. It is expected to
be slightly higher for Latin America. The demand is expected to be relatively
unchanged for the business areas.

Manufacturing

Manufacturing is expected to be lower year over year and relatively unchanged
compared to the first quarter.

Gothenburg, 17 April 2013

Aktiebolaget SKF (publ)

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 around 08.00 on 17 April 2013.

A teleconference will be held on 17 April 2013 at 09.30 CEST, 08.30

(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 First-quarter results 2013 on the
IR website.

investors.skf.com/quarterlyreporting

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 around15,000 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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Contact:

SKF
Press Relations:
Ingalill Östman,+ 46 31-337 3260
mobile: +46 706-973260
ingalill.ostman@skf.com
or
Investor Relations:
Marita Björk, +46 31-337 1994
mobile: +46 705-181994
marita.bjork@skf.com
 
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