SKF Nine-Month Report 2016
Wednesday, October 26, 2016 7:24:00 AM ET
SKF (STO:SKFA) (NQB:SKFRY) (STO:SKFB) (LSE:SKFB)
Alrik Danielson, President and CEO:
"Organic sales were relatively unchanged compared to last year.
According to seasonality, organic sales were lower compared with the
Net sales in the quarter were SEK 17.9 billion, operating profit was SEK
2 191 million and our operating margin was 12.2%. Excluding positive
one-time items of SEK 380 million, operating profit was SEK 1 811
million and operating margin was 10.1%.
Our automotive business continues to improve its performance, in line
with the ambitions set out in the profit improvement programme which was
launched last year, with an operating margin excluding one-time items of
6.6%. Organic sales increased by 4.4% in the quarter compared with the
corresponding quarter last year, driven mainly by strong growth in Asia.
Our industrial business delivered an operating margin, excluding
one-time items of 11.7%, a continued resilient performance. Although
the rate of decline in demand in North America and Asia has diminished,
market conditions continued to be challenging during the third quarter.
Cash flow generation was a solid SEK 1 816 million in the quarter,
excluding the effects from divestments.
Investments in the implementation of world-class manufacturing
technologies in our spherical roller bearing factories in Gothenburg and
Flowery Branch are progressing as planned. Similar technologies and
processes are to be introduced across other product lines as part of our
strategy to improve the flexibility and cost-competitiveness of our
Entering the fourth quarter of 2016, demand for our products and
services is expected to be relatively unchanged both compared to the
same period last year and sequentially."
Key figures, SEKm Q3 2016 Q3 2015 YTD 2016 YTD2015
Net sales 17 912 18 367 54 002 57 782
Operating profit excl. one-time items 1 811 1 976 5 803 6 929
Operating margin excl. one-time items, % 10.1 10.8 10.7 12.0
One-time items in operating profit 380 -151 138 -1 000
Operating profit 2 191 1 825 5 941 5 929
Operating margin, % 12.2 9.9 11.0 10.3
Profit before taxes, excl. operating and financial one-time items 1 669 1 629 5 225 6 231
Profit before taxes 2 049 1 348 5 363 5 181
Net cash flow after investments before financing 1 554 1 808 6 289 4 450
Net sales change y-o-y, %: Organic Structure Currency Total
Q3 2016 -0.6 -2.0 0.1 -2.5
YTD -2.5 -2.4 -1.6 -6.5
Organic sales change in local currencies, per region y-o-y, %: Europe North America Latin America Asia Middle East & Africa
Q3 2016 -0.6 -3.5 -6.5 3.8 0.3
YTD 2.0 -8.3 -4.1 -3.8 1.0
Outlook for the fourth quarter 2016
Demand compared to the fourth quarter 2015 The demand for SKFs products
and services is expected to be relatively unchanged for the Group and
for Industrial. Demand for Automotive is expected to be slightly higher.
Demand is expected to be relatively unchanged in Europe, lower in North
America, slightly higher in Asia and higher in Latin America.
Demand compared to the third quarter 2016
The demand for SKFs products and services is expected to be relatively
unchanged for the Group including both Industrial and Automotive. Demand
is expected to be slightly higher in Europe, lower in North America and
relatively unchanged in Asia and in Latin America.
A teleconference will be held on 26 October at 14:00 (CEST):
SE: +46 8 5065 3937
UK: +44 20 3427 1912
US: +1 646 254 3360
You will find all information regarding the SKF nine-month report 2016
on the Groups IR website.
Aktiebolaget SKF (publ)
The information in this press release is information which AB SKF is
required to disclose under the EU Market Abuse Regulation (EU) No
596/2014 and pursuant to the Securities Markets Act. The information was
provided by the above contact persons for publication on 26 October 2016
at 13:00 CEST.
SKF is a leading global supplier of bearings, seals, mechatronics,
lubrication systems, and services which include technical support,
maintenance and reliability services, engineering consulting and
training. SKF is represented in more than 130 countries and has around
17,000 distributor locations worldwide. Annual sales in 2015 were SEK 75
997 million and the number of employees was 46 635. www.skf.com
(R) SKF is a registered trademark of the SKF Group.
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