SKF on a roll

Swedish ball bearings and seals maker SKF reported record second quarter profits and sales in its interim report on Friday.

Net sales for the second quarter 2006 was up 5 percent to 13.37 billion kronor, while operating profit for the period was 1.7 billion kronor. Net profit was 1.07 billion kronor.

The company said that compared to the second quarter in 2005, sales were up in Europe, a bit higher in North America and much higher in Asia.

SKF said it expects global market demand for products and services to be higher in this year’s third quarter compared to the second quarter.

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Industry bails on Swedish ball bearings

Swedish ball bearing manufacturer SKF announced Tuesday a decrease of its net profit in the third quarter, amid lower-than-expected sales in its industrial business.

Industry bails on Swedish ball bearings

The company’s earnings shrank by 8 percent to 1.123 billion kronor ($173 million) compared to the same period of 2012, and fell short of the 1.27 billion kronor profit expected by analysts interviewed by Dow Jones Newswires.

This is the eighth consecutive quarter with a year-on-year decline in earnings.

“Our cash flow was good in the quarter,” chief executive Tom Johnston said. “We continued to improve our operating margin sequentially despite the negative mix and a stronger than expected currency headwind.”

“SKF sales in the quarter developed well within our automotive business but were somewhat lower than expected in our industrial business.”

Sales climbed by 1 percent to 15.623 billion kronor.

“We see a positive development in our aerospace, renewable energy and railway businesses. However, we see some lack of traction in a number of other industrial markets,” Johnston added.

SKF expects to “rapidly” close the $1.25 billion acquisition of American bearing manufacturer Kaydon Corporation, which it announced last September.

AFP/The Local/og

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