SKF Year-end report 2009
2010 January 28, 12:00 CET
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."
|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|
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.
The manufacturing level will be higher year on year and slightly higher compared to the fourth quarter 2009.
Göteborg, 28 January 2010
|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.|
President and CEO
Further information can be obtained from:
Ingalill Östman, Group Communication
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Marita Björk, Investor Relations
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