SKF results exceed analysts’ expectations

Swedish ball bearing manufacturer SKF has reported record sales and profit for the second quarter of 2007. The results were better than expected, with a profit before taxes of 1,957 million kronor (294 million dollars). That compares to 1,520 million kronor for the same period last year.

Sales for the first half of the year have climbed to 29,334 million kronor, up from 26,662 million kronor in the first six months of 2006. The rise was helped by “significantly higher” sales in Europe, Asia and Latin America.

“The market demand for SKF’s products and services in the third quarter of 2007 is expected to be higher for the Group,” said the company in a statement.

“The demand is expected to be higher in Europe and Latin America, significantly higher in Asia and relatively unchanged in North America. The demand is expected to be higher in the Industrial and Service Division and slightly higher in the Automotive Division.”


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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