SKF First-quarter report 2010
2010 April 20, 08:00 CET
Tom Johnstone, President and CEO:
"SKF delivered a very strong result in the quarter with better volume and higher manufacturing levels resulting in an operating margin of 11.8%. Demand developed positively during the quarter particularly within the automotive business which adversely affected our price/mix. We saw a very positive development of our business in Asia and Latin America and some improvement in North America. However, Europe still remains weak if we exclude our automotive business.
Going forward into the second quarter we expect demand to be significantly higher than the same quarter last year and slightly higher sequentially. As a result of this demand picture we increased our manufacturing as the first quarter progressed which gave a good effect on our cost absorption, particularly in March. We will keep this manufacturing level during the second quarter."
|Q1 2010||Q1 2009|
|Net sales, SEKm||14,446||14,849|
|Operating profit, SEKm||1,702||768|
|Operating margin, %||11.8||5.2|
|Profit before taxes, SEKm||1,504||531|
|Net profit, SEKm||1,070||394|
|Basic earnings per share, SEK||2.27||0.86|
The decrease of 2.7% in net sales for the quarter, in SEK, was attributable to:
volume 5.3%, price/mix -0.3% and currency effects -7.7%.
The quarter included expenses for restructuring activities of around SEK 90 million, mainly impacting the Industrial Division.
Outlook for the second quarter of 2010
Sales development compared to second quarter last year
The demand for SKF products and services is expected to be significantly higher for the Group in total. In Europe and North America it is expected to be higher and in Asia and Latin America significantly higher. It is expected to be slightly higher for the Industrial Division and significantly higher both for the Service Division and Automotive Division.
Sales development compared to the first quarter 2010
The demand is expected to be slightly higher for the SKF Group in total. In Europe and North America it is expected to be slightly higher and in Asia and Latin America higher. For both the Industrial Division and Service Division it is expected to be slightly higher and for the Automotive Division higher.
The manufacturing level will be significantly higher year on year and higher compared to the average of the first quarter 2010.
Gothenburg, 20 April 2010
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 (CET) on 20 April 2010.|
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