SKF Nine-month Report 2018
GÖTEBORG, Sweden, Oct. 25, 2018 /PRNewswire/ --
Alrik Danielson, President and CEO:
"The third quarter developed as anticipated, with continued growth in both our industrial and automotive businesses. Sales grew organically by 7%, to stand at SEK 21.3 billlion. Our operating profit was SEK 2.6 billion, 0.6 billion higher than last year and the highest operating profit we have ever recorded in a third quarter.
Cash flow was SEK 1.6 billion, compared to SEK 0.7 billion the previous year. This was supported by our continued efforts to reduce finished goods inventories, whilst maintaining good customer service levels.
The industrial business continues its strong performance, with an operating margin of 14% and organic growth of 9%. We saw significantly higher sales volumes in our three largest regions: Europe, North America and Asia, driven by continued broad-based investments and activities in most of the industries in which we operate.
The automotive business delivered an operating margin of 7%. Despite a drop in European car sales, resulting from the implementation of new test cycles (WLTP) and a slow-down in truck sales in Asia the business delivered an organic sales growth of 2% in the quarter.
At the end of July we announced the divestment of our linear and actuation business for a total consideration of SEK 2.75 billion. The deal is expected to close during the fourth quarter. Following a total of eight divestments in the past three years, we have strengthened our financial position and focused our business portfolio. We continue to invest in research and development with a number of new market offerings being launched in the coming months, including solutions for the rail, food and beverage and agriculture industries.
Entering the fourth quarter of 2018, we expect to see higher demand within industrial and slightly lower demand within automotive."
Key
figures,
SEKm
Q3 2018
Q3 2017 Jan-Sep 2018
Jan-Sep 2017
58,457
Net
sales 21,341 18,627 64,521
Operating
profit 2,597 1,965 8,147 6,575
Operating
margin,
% 12.2 10.5 12.6 11.2
Profit
before
taxes 2,344 1,692 7,552 5,874
Net
cash
flow
after
investments
before
financing 1,626 681 4,067 3,049
Basic
earnings
per
share 3.35 2.29 11.37 7.89
Net sales
change y-o-
y, %, Q3
Organic
Structure
Currency
Total
SKF Group 6.9 -0.1 7.8 14.6
Industrial 9.2 -0.1 8.4 17.5
Automotive 1.7 0.0 6.1 7.8
Net sales
change y-o-
y, %, Jan-Sep
2018
Organic
Structure
Currency
Total
SKF Group 7.9 -0.5 3.0 10.4
Industrial 9.6 -0.7 3.4 12.3
Automotive 4.0 0.0 2.1 6.1
Organic sales
change in
local
currencies,
per region y-
o-y, %, Q3
Europe North America Latin America
Asia
Middle East & Africa
SKF Group 6.0 8.2 -0.1 11.2 -10.0
Industrial
+++
+++
+/-
+++
Automotive
+/-
++
+/-
+
Organic sales
change in
local
currencies,
per region y-
o-y, %, Jan-
Sep 2018
Europe North America Latin America
Asia
Middle East & Africa
SKF Group 7.5 5.6 -1.1 13.9 2.9
Industrial
+++
+
+++
+
Automotive
+/-
++
+/-
+++
Outlook and guidance
Demand for Q4 2018 compared to Q4 2017
The demand for SKF's products and services is expected to be slightly higher for the Group, including higher demand for Industrial and slightly lower demand for Automotive. Demand is expected to be significantly higher in North America, higher in Asia, relatively unchanged in Europe and slightly higher in Latin America.
Guidance Q4 2018
-- Financial net: SEK -225 million
-- Currency impact on the operating profit is expected to be relatively
unchanged compared with 2017, based on exchange rates per 30 September
2018
Guidance 2018
-- Tax level excluding effect related to divested businesses: around 28%
-- Additions to property, plant and equipment: around SEK 2,600 million.
Previous guidance around SEK 2,400 million.
A teleconference will be held on 25 October 2018 at 14:00 (CET):
SE: +46 (0)8-5065-3942
UK: +44 (0)330-336 9411
US: +1-929-477-0402
http://investors.skf.com/en/result-centre
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 The information was provided by the above contact persons for publication on 25 October 2018 at 13:00.
For further information, please contact:
PRESS:
Theo Kjellberg,
Director,
Press Relations
tel: +46-31-337-6576, mobile: +46-725-776576,
e-mail: theo.kjellberg@skf.com
INVESTOR RELATIONS:
Patrik Stenberg,
Head of Investor Relations
+46-31-337-2104; +46-705-472 104;
patrik.stenberg@skf.com
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SKF Q3 2018
http://news.cision.com/skf/i/alrik-danielson,c2515564
Alrik Danielson
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SOURCE SKF
