NEWS

SKF Half-year report 2018

<p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> Alrik Danielson, President and CEO: <p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> “Our record start to 2018 has continued. Sales grew by 9% organically, to SEK 22.6 billion and our operating profit was SEK 2,925 million – SKF’s highest reported quarterly profit to date. Our operating margin, at 12.9%, continues to improve. Cash flow was also strong, at 2.2 billion. <p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> The industrial business had a strong quarter with an operating margin of 14.6% and an organic growth of 10.7%, with strong growth in both Asia and Europe. We also saw stronger growth in North America, albeit from a lower level. By industry, we saw particular strength in heavy industries and industrial drives. <p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> The automotive business delivered a strong operating margin of 8.9%, driven by good demand for both trucks and light vehicles. Organic growth was 5.2%, a clear sign that we continue to outpace vehicle production levels. <p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> We continue to invest in the development of our value propositions, through the opening of a Rotating Equipment Performance Center in Gothenburg. The Center’s team of machine health specialists will act as a Nordic hub for the monitoring of connected customer machines as well as playing an important role in developing new logistic solutions for spare parts and remanufacturing services. <p class="c2" style="margin-top:9px;margin-bottom:1em;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;line-height:1.5em;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;white-space:normal;background:#FFFFFF;"> During the last 18 months, we accelerated production to ensure high customer service levels. As foreseen and communicated in April, production has been adjusted during the second quarter, to avoid building inventories. Entering the third quarter of 2018, we expect to see continued growth for both our industrial and automotive businesses.” <div class="table-wrapper" style="margin:9px 0px 0px;padding:0px;border:0px;outline:0px;font-size:15px;vertical-align:baseline;position:relative;clear:none;color:#5E5E5E;font-family:Arial, Helvetica, sans-serif;line-height:17px;white-space:normal;background:#FFFFFF;"> <table class="c4 ke-zeroborder" border="0" cellspacing="0" cellpadding="0" style="margin:9px 0px 0px;padding:0px;border:1px solid #DADADA;outline:0px;font-size:inherit;vertical-align:baseline;border-spacing:0px;width:auto;background:transparent;"> <tbody style="margin:0px;padding:0px;border:0px;outline:0px;vertical-align:baseline;background:transparent;"> <tr style="margin:0px;padding:0px;border:0px;outline:0px;background:transparent;"> <td style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Key figures, SEKm </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Q2 2018 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Q2 2017 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Half year 2018 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Half year 2017 </td> </tr> <tr class="even" style="margin:0px;padding:0px;border:0px;outline:0px;background:transparent;"> <td style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> Net sales </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 22,620 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 20,229 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 43,180 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 39,830 </td> </tr> <tr style="margin:0px;padding:0px;border:0px;outline:0px;background:transparent;"> <td style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> Operating profit </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> 2,925 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> 2,315 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> 5,550 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background-image:initial;background-attachment:initial;background-size:initial;background-origin:initial;background-clip:initial;background-position:initial;background-repeat:initial;"> 4,610 </td> </tr> <tr class="even" style="margin:0px;padding:0px;border:0px;outline:0px;background:transparent;"> <td style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> Operating margin, % </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 12.9 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:top;background:#F9F9F9;"> 11.4 </td> <td class="c3" style="margin:0px;padding:10px;border:1px solid #DADADA;outline:0px;font-size:15px;vertical-align:

20 Jul,2018