Building DK Building SE Electronics DK Energy DK Food DK Food SE Metal Metal DK Metal NO Metal SE Retail DK Wood DK
 

SKF expects demand to be lower than Q1 last year

- By Charlotte Stubben

SKF published their Year-end report 2011. Demand for the Group in total is expected to be lower than in the first quarter last year and similar to the fourth quarter.

Tom Johnstone, President and CEO:
"The SKF Group had a very strong performance in 2011 with record sales, operating profit and operating margin.

The integration of Lincoln is going according to plan and SKF has also made important progress on the initiatives they announced last year to support their long-term financial targets.

A number of new products
SKF launched a number of new products, gained significant business and opened their new bearing factory in China. Spending on Research and Development increased significantly as planned, and their new Global Technical Centre in India was opened.

Q4 - demand softened
In the fourth quarter overall demand softened as expected but with a somewhat better demand in USA and weaker in Asia. As planned SKF ran their production lower than sales to reduce inventories and this had the expected impact on their results.

Looking into the first quarter SKF still sees uncertainty in demand in Europe and in their automotive business. Demand for the Group in total is expected to be lower than in the first quarter last year and similar to the fourth quarter. SKF will continue to drive their initiatives to strengthen SKF and to invest in the faster growing regions and markets. Their new structure for the industrial market is under implementation and will improve their ability to even better support their customers in each industry."

Sales for the Group increased by 2.8%. In Europe they increased by 0.5%, in North America by 5.6%, in Latin America by 11.0%, in Asia by 0.8% and in the Middle East and Africa by 19.9%.

Read more: SKF Solution Factory opens in Birmingham, Alabama

The manufacturing level was lower than in the fourth quarter last year.

One-off costs
The quarter included one-off costs of around SEK 100 million. Around SEK 40 million are related to impairment of assets and have no impact on cash flow. The remaining costs are related to various restructuring activities.

Outlook for the first quarter of 2012
The demand for SKF's products and services is expected to be slightly lower for the Group. It is expected to be lower in Europe, higher in North America, relatively unchanged in Asia and slightly higher in Latin America.

Read more: SKF to invest SEK 220 million in Kaydon production facility in Brazil

The demand is expected to be relatively unchanged for the Industrial Division and the Service Division and significantly lower for the Automotive Division.

Demand compared to the fourth quarter 2011: The demand for SKF's products and services is expected to be relatively unchanged for the Group. It is expected to be slightly lower for Europe, relatively unchanged for Asia and Latin America, and higher for North America. The demand is expected to be relatively unchanged for all divisions.

Manufacturing level
The manufacturing level is expected to be significantly lower year on year and relatively unchanged compared to the fourth quarter.

Write Comment
Sign up for our newsletter
Already 11 subscribers.
View the latest newsletter.
Follow us on:

See allNews from the companies

3 pieces of advice for your breathing air

January 28, 2015 12:00 AM
Ultrafilter Skandinavien ApS

A short article about our experience in breathing air and 3 good advices on how you might optimize your usage and possibly the production around your breathing air.

High´vacuum unit type HFU - NEW from V. Aa. Gram A/S!

January 26, 2015 10:59 AM
V. Å. Gram A/S

V. Aa. Gram A/S has designed the very compact and efficient high vacuum unit type HFU, which is very suitable as extraction unit and filter in connection with process extraction and cleaning.

Project excellence – a key success factor for AP&T

January 26, 2015 11:26 AM
AP&T

With a new project organization, AP&T has strengthened its ability to deliver complete sheet metal forming solutions with a focus on reduced cost of ownership for the customer.

TAON Hydraulik strengthened by new skills.

January 23, 2015 11:03 AM
TAON HYDRAULIC, Hydraulic Systems and Components

New skills in the form of a new employee and new business partners strengthen TAON Hydraulik.

New option from PALOMAT

January 21, 2015 10:02 AM
BILA A/S

Upgrade your pallet magazine/ pallet dispenser PALOMAT with the new option - Safety frame with gate for 15 pallets

Powerful HMI display eTOP605 including JMobile Studio Software 2995DKK

January 23, 2015 9:47 AM
Smart Automation ApS

Now you can get a quick start with the new powerful DNV approved 5" color display with operating temperature -20 - +50

January 16, 2015
January 15, 2015
January 12, 2015
January 9, 2015
January 5, 2015
December 19, 2014
December 17, 2014
December 16, 2014
December 15, 2014
December 10, 2014
December 9, 2014