SKF Group sales and profits up

ERJ staff report (TP)

Gothenburg, Sweden – Automotive supplier SKF Group revealed an increase in sales and profits in its latest half-year report.

Net sales for Q2 2014 was SEK 17,955 million (€1.94bn), in the same period last year it was SEK 16,392 million. In terms of YTD (year-to-date) 2014, net sales was SEK 34,689 million, in comparison YTD 2013 was SEK 31,544 million.

Profit also rose from SEK 1,837 million in Q2 2013 to SEK 2,096 million in the second quarter of this year. There was also positive movement when profit in YTD 2014 was reported at SEK 4,120 million – for YTD 2013 it was SEK 3,317 million.

Tom Johnstone, president and CEO, said: “Sales overall developed in line with our expectations and excluding one-offs we had a good cash flow.

“While the business mix remained somewhat negative the steps we are taking to improve the price/mix gave positive results.

“We also gained a number of important new businesses. Kaydon is developing well [and] the integration activities are going according to plan.”

In September 2013, SKF agreed to purchase the US-based Kaydon Corporation for $1.25 billion (€923.5m).

Johnstone also said it has received a major order with a “North American wind energy customer” for business in North America and Brazil.

For Q3 2014, the Swedish group says demand is expected to be slightly higher in North America, higher for Asia, relatively unchanged for Europe and slightly lower for Latin America.