Industry bails on Swedish ball bearings
The Local · 16 Oct 2013, 07:17
Published: 16 Oct 2013 07:17 GMT+02:00
- Swedish bearings giant buys US firm Kaydon (05 Sep 13)
- SKF stock climbs on profits surprise (16 Jul 13)
- Swedish ball-bearing giant slashes 2,500 jobs (14 Jan 13)
- Sweden's SKF in EU ball bearing probe (09 Nov 11)
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.