SKF First-quarter report 2010

SKF First-quarter report 2010 

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
Note: some of these key figures were already published on 16 April 2010.


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.
Manufacturing level
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 


Aktiebolaget SKF
(publ.)


Tom Johnstone	
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.



Further information can be obtained from:
Ingalill Östman, Group Communication, tel: +46-31-3373260, mobile:
+46-706-973260, e-mail: ingalill.ostman@skf.com 
Marita Björk, Investor Relations, tel: +46-31-3371994, mobile: +46-705-181994,
e-mail: marita.bjork@skf.com

Aktiebolaget SKF, 415 50 Göteborg, tel: 031 337 1000, fax 031 337 1722,
www.skf.com