SKF Nine-month report 2013
GÖTEBORG, Sweden -- October 15, 2013
Tom Johnstone, President and CEO:
“Our cash flow was good in the quarter. We continued to improve our operating
margin sequentially despite the negative mix and a stronger than expected
currency headwind. This shows that the actions which we are taking to improve
our product portfolio, invest in our business and reduce costs are giving
SKF sales in the quarter developed well within our automotive business but
were somewhat lower than expected in our industrial business. Within
industrial we see a positive development in our aerospace, renewable energy
and railway businesses. However, we see some lack of traction in a number of
other industrial markets - not getting worse but not getting better yet
either. The automotive business benefitted from an improved demand and better
mix of sales particularly within trucks and the vehicle service market and
this, combined with the steps we are taking, positively helped their margin.
During the quarter we took another important step to strengthen SKF through
announcing the agreement to acquire Kaydon Corporation. Kaydon is an excellent
fit for SKF in so many ways and will enable us to better serve our customers
and distributors. The tender offer for the shares closes today and hopefully
we can quickly complete the acquisition.
Looking forward into the fourth quarter we expect to keep our sales and
manufacturing on the same level overall.”
Key figures Q3 2013 Q3 2012 YTD 2013 YTD 2012
Net sales, SEKm 15,623 15,486 47,167 49,591
Operating profit, 1,923 1,908 5,240 6,093
Operating margin, 12.3 12.3 11.1 12.3
excluding one-off 12.9 12.3 12.2 12.6
Profit before 1,717 1,709 4,581 5,439
Net profit, SEKm 1,165 1,251 3,087 3,821
Basic earnings 2.47 2.67 6.57 8.11
per share, SEK
The operating profit was affected by one-off costs in the third quarter by
around SEK 85 million, mainly write-down and impairment not part of the
previously announced restructuring programme. The operating profit in the
first nine months was affected by one-off costs by around SEK 525 million
y-o-y, in Volume Price/ Structure Currency Total
SEK, mix effect
Q3 2013 2.2% -0.2% 1.1% -2.2% 0.9%
Year to date -3.0% 0.0% 1.8% -3.7% -4.9%
Sales in the third quarter in local currencies and excluding structure
increased by 1% in Europe, by 9% in Latin America, by 5% in Asia and by 8% in
Middle East and Africa. In North America they decreased by 2%.
Manufacturing in the third quarter was slightly higher compared to last year.
Sales in the first nine months in local currencies and excluding structure
decreased by 4% in Europe and North America, by 3% in Asia and are relatively
unchanged in Middle East and Africa. In Latin America they increased by 10%.
Manufacturing in the first nine months was relatively unchanged compared to
Outlook for the fourth quarter of 2013
Demand compared to the fourth quarter 2012
The demand for SKF’s products and services is expected to be slightly higher
for the Group, Asia and Europe and relatively unchanged for North America and
Latin America. It is expected to be slightly higher for Strategic Industries
and Regional Sales and Service and higher for Automotive.
Demand compared to the third quarter 2013
The demand for SKF’s products and services is expected to be relatively
unchanged for the Group, Europe, North America and Latin America as well as
for all the business areas. It is expected to be slightly higher for Asia.
Manufacturing is expected to be higher year over year and relatively unchanged
compared to the third quarter
Gothenburg, 15 October 2013
A teleconference will be held on 15 October at 13.00 CEST, 12.00 (UK), 07.00
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 2013 on
the IR website.
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 12.00 on 15 October 2013.
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.
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