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Swedish bearings firm SKF reports profits jump

Swedish ball-bearings giant SKF on Friday report a hike in second-quarter profit, aided by an improving automotive market.

Swedish bearings firm SKF reports profits jump

The company, the world’s biggest maker of industrial bearings, posted a profit of 1.71 billion Swedish kronor ($262 million) for the April-June quarter.

For the same period in 2010, it made a net profit of 1.41 billion kronor.

The results were slightly below analyst expectations, which SKF blamed on unfavourable foreign exchange and rising costs.

“We will continue to invest in our business and take the necessary steps to offset the high raw material costs and currency headwinds,” chief executive Tom Johnstone said.

The announcement sent shares in the Gothenburg-based company down by 4.9 percent to 174.10 kronor on a Stockholm Stock Exchange which was showing a fall of 1.0 percent.

SKF said it expected demand to increase in the third quarter, especially in Asia and South America.

SKF, which also makes sealants, is an important supplier to many parts of the industrial processing chain and is therefore regarded as a leading indicator of activity in manufacturing and machine tooling.

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SKF

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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