SKF Half-year report 2011
Tom Johnstone, President and CEO:
“Demand developed very much in line with our expectations during the
quarter and this, combined with the actions we are taking, enabled us to
deliver a record operating profit and operating margin as well as a good
cash flow. Our sales in local currencies developed positively in all
regions and divisions. As planned we have increased the investments in
our business to support our long-term initiatives and financial targets.
Despite the increased uncertainty in the market we expect a good demand
development for the Group in the third quarter, excluding the normal
seasonality impact. We will continue to invest in our business and take
the necessary steps to offset the high raw material costs and currency
headwinds.”
Q2 Q2 YTD YTD
Key figures 2011 2010 2011 2010
Net sales, SEKm 16,712 15,709 33,414 30,155
Operating profit, SEKm 2,623 2,239 5,127 3,941
Operating margin, % 15.7 14.3 15.3 13.1
Profit before taxes, SEKm 2,446 2,047 4,764 3,551
Net profit, SEKm 1,743 1,451 3,363 2,521
Basic earnings per share, SEK 3.76 3.09 7.20 5.36
Net sales change in SEK, attributable to: Volume Price/mix Structure
Currency effect Total
Q2 12.6% 1.6% 4.4%
-12.2% 6.4%
Half year 16.1% 1.5% 4.7%
-11.5% 10.8%
Sales in local currency in the second quarter compared to the same
period last year (excl. structure)
Sales for the Group were significantly higher and increased by 14.2%. In
Europe they increased by 14.0%, in North America by 15.8%, in Asia by
16.9% and in the Middle East andAfricaby 12.2%. InLatin Americasales
increased by only 2.9%, affected by the introduction of a new
warehousing operation.
The manufacturing level was significantly higher than in the second
quarter last year.
Outlook for the third quarter of 2011
Demand compared to the third quarter last year
The demand for SKF's products and services is expected to be
significantly higher for the Group as well as for Asia and Latin
America. For Europe and North America it is expected to be higher. It
will be significantly higher for the Industrial Division and for the
Service Division and higher for the Automotive Division.
Demand compared to the second quarter 2011 and adjusted for normal
seasonality
The demand for SKF's products and services is expected to be slightly
higher for the Group as well as for North America. It is expected to be
relatively unchanged for Europe, higher in Asia and significantly higher
in Latin America. For the Industrial Division and the Service Division
it is expected to be slightly higher and for the Automotive Division
relatively unchanged.
Manufacturing level
The manufacturing level will be significantly higher year on year and
relatively unchanged compared to the second quarter, adjusted for normal
seasonality.
Gothenburg, 14 July 2011
Aktiebolaget SKF
(publ.)
Tom Johnstone
President and CEO
_____________________________________________________________
AB SKF is required to disclose the information provided herein pursuant
to the Securities
Markets Act and/or the Financial Instruments Trading Act. The
information was submitted
for publication at 08.00 on 15 July 2011.
_____________________________________________________________
A teleconference, ref.no. 898774, will be held on 15 July 2011 at 09.00
CET, 08.00 (UK):
SE: +46 (0)8 5052 0110
UK: +44 (0)207 162 0077
You will find all information regarding SKF Half-year results 2011 on
the IR website.
investors.skf.com/quarterlyreporting
(http://investors.skf.com/quarterlyreporting)
Further information can be obtained from:
Ingalill Östman, Group Communications
tel: +46-31-3373260, mobile: +46-706-973260, e-mail:
ingalill.ostman@skf.com (ingalill.ostman@skf.com)
Marita Björk, Investor Relations,tel: +46-31-3371994, mobile:
+46-705-181994, e-mail: marita.bjork@skf.com (marita.bjork@skf.com)
SKF Half-year report 2011
| Source: SKF, AB
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