SKF Half-year report 2009
2009 July 15, 08:00 CET
Tom Johnstone, President and CEO:
"We had a very strong cash flow in the quarter and overall a good performance in light of the difficult business environment. While the decline in demand was dramatic compared to last year, the sequential trend for the Group shows signs of levelling off. The manufacturing level was even lower than sales resulting in a further reduction in our inventories.
We are already seeing benefits from our cost reduction activities. Additional activities were announced, which combined with steps already taken will result in annualized savings of around SEK 800 million from mid next year.
We expect that the year on year decline in our sales volume in the third quarter will be slightly less than what we have seen in the first half. The manufacturing level will continue to run lower than sales."
|Net sales, SEKm||14,167||16,077||29,016||31,673|
|Operating profit, SEKm||474||2,135||1,242||4,175|
|Operating margin, %||3.4||13.3||4.3||13.2|
|Operating margin excl. restructuring %||6.9||13.3||6.6||13.2|
|Profit before taxes, SEKm||312||1,978||843||3,902|
|Net profit, SEKm||323||1,369||717||2,665|
|Basic earnings per share, SEK||0.69||2.95||1.55||5.72|
volume -30.8%, structure 1.1%, price/mix 5.6% and currency effects 12.2%.
For the first half year, the decrease of 8.4%, in SEK, was attributable to:
volume -28.9%, structure 1.3%, price/mix 6.3% and currency effects 12.9%.
The quarter included expenses for restructuring activities of SEK 500 million of which around SEK 480 million refer to programmes announced in the second quarter. For the first half year the expenses amount to around SEK 675 million.
Outlook for the third quarter of 2009
Compared to last year the demand for SKF products and services is expected to be significantly lower in the third quarter compared to the third quarter last year for the Group in total, for all the Divisions and for all regions.
Compared to the second quarter and adjusted for seasonality, demand is expected to be relatively unchanged for the SKF Group in total. It is expected to be lower in Europe, relatively unchanged in North America and slightly higher in Asia and Latin America. It is expected to be slightly higher for the Automotive Division, relatively unchanged for the Service Division and slightly lower for the Industrial Division.
The manufacturing level will be significantly lower year on year and relatively unchanged compared to the second quarter.
Göteborg, 14 July 2009
President and CEO, Board member
|Lena Treschow Torell
|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 15 July 2009.|
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