SKF Nine-month report 2009
2009 October 20, 08:00 CET
Tom Johnstone, President and CEO:
"Against the backdrop of significantly lower sales and manufacturing in the quarter the Group delivered a good result and once again a very strong cash flow. Restructuring and cost reduction efforts already launched combined with short-time working are providing good results. During the third quarter our sales and manufacturing were positively impacted by the good development of our automotive business driven primarily by the government incentives for the car industry. Our industrial business continued to weaken.
For the fourth quarter we see a slight sequential improvement in our business, but year on year it will still be significantly down. The possible negative impact of the ending of certain incentive programmes for the car industry is difficult to forecast and may affect demand during the quarter. Our efforts to further reduce costs in our operations are continuing."
|Net sales, SEKm||13,324||15,381||42,340||47,054|
|Operating profit, SEKm||957||2,085||2,199||6,260|
|Operating margin, %||7.2||13.6||5.2||13.3|
|Operating margin excl. restructuring %||8.7||13.6||7.3||13.3|
|Profit before taxes, SEKm||689||1,859||1,532||5,761|
|Net profit, SEKm||483||1,257||1,200||3,922|
|Basic earnings per share, SEK||1.01||2.67||2.56||8.39|
volume -24.9%, structure 1.2%, price/mix 3.7% and currency effects 6.6%.
For the first nine months, the decrease of 10.0%, in SEK, was attributable to:
volume -27.6%, structure 1.3%, price/mix 5.5% and currency effects 10.8%.
The quarter included expenses for restructuring activities of around SEK 200 million, of which around SEK 175 million refer to programmes announced in the second quarter. For the nine months the expenses amount to around SEK 875 million. Non-cash items in the quarter were around SEK 70 million, for the nine months they were around SEK 135 million.
Cash flow, after investments and before financing, was SEK 1,359 million (-526) for the third quarter and SEK 4,307 million (215) for the first nine month 2009. The cash flow includes payments for acquisitions and non-controlling interests of SEK 16 million for the quarter and SEK 239 million for the first nine months.
Outlook for the fourth quarter of 2009
Sales development compared to fourth quarter last year
The demand for SKF products and services is expected to be significantly lower for the Group in total and in Europe and North America. In Asia it is expected to be unchanged and in Latin America slightly higher. It is expected to be unchanged for the Automotive Division but significantly lower for the Industrial Division and Service Division.
Sales development compared to the third quarter this year
The demand is expected to be slightly higher for the SKF Group in total. It is expected to be relatively unchanged in Europe and North America and slightly higher in Asia and Latin America. It is expected to be relatively unchanged for the Automotive Division and slightly higher for both the Service Division and the Industrial Division.
The manufacturing level will be significantly lower year on year and slightly higher compared to the third quarter.
Göteborg, 19 October 2009
President and CEO
|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 08.00 (CEST) on 20 October 2009.|
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