SKF Year-end report 2003
SKF reports increased sales, measured in local currencies, compared to 2002 both
for the fourth quarter and for the full year. The operating margin, excluding
restructuring expenses and impairments of MSEK 487, reached 10.3% for the fourth
quarter and 9.2% for the full year. Cash flow was also strong both in the fourth
quarter and for the full year. SKF outperformed the market in a number of
customer segments during the year. The Board proposes a dividend increase of 25%
to SEK 10.00.
* The SKF Group reports a profit before taxes for the fourth quarter 2003 of
MSEK 479 (979), and, excluding restructuring expenses and impairments, MSEK 966.
The profit for the full year 2003 was MSEK 2 793 (3 542), and, excluding
restructuring expenses and impairments in the fourth quarter, MSEK 3 280.
* Net profit for the fourth quarter 2003 was MSEK 405 (719). Net profit for
the full year 2003 was MSEK 2 039 (2 466).
* Earnings per share for the fourth quarter 2003 were SEK 3.56 (6.34).
Earnings per share for the full year 2003 were SEK 17.91 (21.67).
* Net sales for the fourth quarter 2003 was MSEK 10 245 (10 665). Net sales
for the full year 2003 was MSEK 41 377 (42 430).
The operating profit for the fourth quarter 2003 was MSEK 569 (1 121) and,
excluding restructuring expenses and impairments, MSEK 1 056. The figure for the
full year 2003 was MSEK 3 299 (4 022) and, excluding restructuring expenses and
impairments in the fourth quarter, MSEK 3 786.
The operating margin for the fourth quarter 2003 was 5.6% (10.5), and, excluding
restructuring expenses and impairments, 10.3 %. The operating margin for the
full year 2003 was 8.0% (9.5), and, excluding restructuring expenses and
impairments in the fourth quarter, 9.2%.
Cash flow, after investments before financing, for the fourth quarter 2003 was
MSEK 812 (559),
and for the full year 2003 MSEK 2 351 (2 644).
The decrease in net sales for the fourth quarter 2003 compared to the fourth
quarter 2002 was attributable to: structure 0.3%, volume 3.1%, price/mix 0.1%
and currency effect -7.4%.
A comparison between the full years shows: structure 0.3% volume 4.2%, price/mix
0.7% and currency effect -7.7%.
Sales development
Total sales, calculated in local currencies, for the SKF Group were up 3.5% in
the fourth quarter and 5.2% for the full year. In Europe sales were unchanged in
the fourth quarter 2003 compared to the same period last year. For the full year
sales were slightly up. In North America sales were slightly lower for the
fourth quarter but unchanged for the full year. In Asia sales were significantly
higher for both the fourth quarter and the full year.
Outlook
The market demand for the Group's products and services is expected to improve
during the first quarter 2004. In Europe it is expected to be slightly higher,
while it will remain relatively flat in North America. Demand is expected to
increase significantly in both Asia and Latin America.
Manufacturing will, as is normal during the first half of the year, be increased
slightly ahead of market demand to ensure a good service level throughout the
summer period.
The Group's financial net for the fourth quarter 2003 was MSEK -90 (-142) and
for the full year 2003 MSEK -506 (-480). The lower level for the fourth quarter
was mainly due to foreign exchange gains. Interest-bearing loans at year-end
totalled MSEK 1 618 (2 409) while provisions for post-employment benefits
amounted to MSEK 7 885 (1. At year-end, the Group had financial assets of MSEK 6
814 (1, including short-term financial assets of MSEK 6 342 (5 530).
Additions to tangible assets for the fourth quarter 2003 totalled MSEK 520
(471), and for the full year MSEK 1 379 (1 442). Of the Group's total additions
to tangible assets, approximately MSEK 70 (76) were invested in measures to
improve the environment both internally and externally. Depreciation according
to plan was MSEK 1 505 (1 588).
In December 2003, SKF's equity to assets ratio was 43,1%, which is above the
average objective for this ratio which is 35%.
Three acquisitions were made in 2003: Scandrive Control AB, Rolling Stock Supply
& Service Pty Ltd. and BFW Coupling Services Ltd. The acquisitions price for the
three companies was MSEK 82 and total number of employees at acquisition 58.
Compared with the year 2002, exchange rates for the full year 2003, including
the effects of translation and transaction flows, had a negative effect on SKF's
operating profit of MSEK 790. In the fourth quarter 2003, the corresponding
negative effect was 150 MSEK. For the first quarter 2004 the estimated negative
effect is MSEK 120 and for the full year 2004, based on current assumptions and
exchange rates, is estimated to MSEK 500.
Expenditure for research and development was MSEK 750 (767), which was 1.8%
(1.8) of sales in 2003. Expenditure for research and development does not
include expenditure for IT solutions and customized solutions. The number of
first filings of patent applications was 151. The number in 2002 was 158.
The average number of employees for the year 2003 was 37 632 (38 609) and the
registered number of employees at the end of the year was 38 700 (39 739).
At the end of December 2003, the Group's inventories amounted 20.4% (21.2) of
annual sales. The return on capital employed for the 12-month period ended
December 31, 2003 was 14.2% (17.1). Return on equity was 13.6% (15.6).
During the year, the Group decided that all the factories within SKF should be
certified according to the health and safety management standard OHSAS 18001
before the end of 2005. Recent acquisitions will be handled according to a
separate programme.
SKF has applied the new accounting principles for 2003 "Employee benefits" and
"Segment reporting" in accordance with Swedish GAAP and IFRS.
Dividend policy and pension obligations
Based on the SKF Group's steady financial performance the Board of AB SKF has
decided to change the dividend policy and to fund certain pension obligations.
New dividend policy
SKF's dividend policy is based on the principle that the dividend should be
adapted to the trend of earnings and cash flow, taking into account the Group's
development potential and financial position. The Board of Directors' view is
that the dividend should amount to approximately one half of SKF's average net
profit calculated over a business cycle.
In the previous policy the dividend amounted to one third.
(1No comparable figure exist for 2002. "Employee benefits" was implemented as of
January 1, 2003.
Funding of pension obligations
The Board has decided to establish pension foundations to fund approximately
MSEK 3 000 of the pension obligations in Germany and Sweden, which are included
in the total provisions for
post-employment benefits of MSEK 7 885. This would mean that the financial
assets used for this purpose would be netted against the corresponding
provisions for post-employment benefits in the balance sheet. Funded obligations
would have a slightly positive effect on SKF's profitability and key ratios.
Restructuring expenses and impairments
During the fourth quarter 2003 the cost for restructuring expenses was MSEK 282
and impairments was MSEK 205, which amounted to MSEK 487. MSEK 421 against cost
of goods sold and MSEK 66 against selling and administrative expenses. They are
related to the closure of the factories in Franklin in USA (Automotive
Division), Thomery in France (Electrical Division) and the restructuring of
Ovako Steel. In addition to these major activities, some smaller activities were
also decided during the quarter. The details of how they affect the Divisions
result is shown in the different division reports.
Divisions
Comments on sales per geographical region are based on local currencies and
compared to the corresponding period for 2002.
Industrial Division
The operating result for the fourth quarter 2003 amounted to MSEK 373 (457),
resulting in an operating margin of 9.7% (11.6) on total sales (sales and
deliveries to external and internal customers). The operating result for the
full year 2003 amounted to MSEK 1 434 (1 625), resulting in an operating margin
of 9.3% (10.4) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 48 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
1 482 with an operating margin of 9.7%.
External sales for the fourth quarter 2003 amounted to MSEK 2 336 (2 397), a
decrease of 2.5%. External sales for the full year 2003 amounted to MSEK 9 714
(9 742), a decrease of 0.3%. Total sales for the fourth quarter were MSEK 3 849
(3 952) and for the full year MSEK 15 343 (15 650).
Sales in Europe were relatively unchanged for both the fourth quarter and full
year. In North America sales were higher for the fourth quarter and
significantly higher for the full year. Sales in Asia were significantly higher
for both the fourth quarter and the full year.
Growth was good and ahead of market development for SKF's sales to wind turbine
manufacturers during the year. SKF participated actively during the year in the
development of new megawatt turbines, mainly for the on- and offshore wind-
energy business. SKF was deeply involved with Vestas Wind Systems, the globally
leading manufacturer of wind turbines, in the early design stage of their new
wind turbines which improve cost efficiency per MWh.
During the year Scandrive Control AB, the leading Swedish manufacturer of
integrated servo gears for the printing industry, was acquired. SKF also
acquired Rolling Stock Supply & Service Pty Ltd., the leading railway bearing
service company in Australia.
Automotive Division
The operating result for the fourth quarter 2003 amounted to MSEK 3 (93),
resulting in an operating margin of 0.1% (2.6) on total sales. The result for
the full year 2003 amounted to MSEK 434 (523), resulting in an operating margin
of 3.0% (3.5) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 74 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
508 with an operating margin of 3.5%.
External sales for the fourth quarter 2003 amounted to MSEK 3 110 (3 228), a
decrease of 3.7%. External sales for the full year 2003 amounted to MSEK 13 108
(13 483), a decrease of 2.8%. Total sales for the fourth quarter were MSEK 3 451
(3 567) and for the full year MSEK 14 535 (14 930).
Sales to the car and light truck industry in both Europe and North America were
unchanged for the fourth quarter but higher for the full year.
Sales to the heavy truck industry in Europe were higher both in the fourth
quarter and for the full year. In North America, they were significantly higher
in the fourth quarter but significantly lower for the full year.
Sales to the vehicle service market in Europe were the same in the fourth
quarter but higher for the full year. Sales in North America were significantly
higher both in the fourth quarter and for the full year. In Asia, sales were the
same both in the fourth quarter and for the full year.
In the fast-growing market in China, SKF gained the wheel hub bearing units
business for the Ford Mondeo during the year in addition to supplying other
major manufacturers operating joint venture in China. To further support these
customers the CR China factory in Wuhu was inaugurated in November, 2003.
Through its subsidiary, Chicago Rawhide, SKF is a leading supplier of seals for
front crankshaft modules and has now introduced the fourth generation of PTFE
technology in this application. This helped SKF to win a major contract for both
front and rear crankshaft seals for a new diesel engine to be released in mid
2005.
Electrical Division
The operating result for the fourth quarter 2003 amounted to MSEK -46 (141),
resulting in an operating margin of -2.8% (8.3) on total sales. The result for
the full year 2003 amounted to MSEK 215 (419), resulting in an operating margin
of 3.3% (6.2) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 134 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
349 with an operating margin of 5.4%.
External sales for the fourth quarter 2003 amounted to MSEK 445 (479), a
decrease of 7.1%. External sales for the full year 2003 amounted to MSEK 1 856
(1 935), a decrease of 4.1 %. Total sales for the fourth quarter were MSEK 1 615
(1 693) and for the full year MSEK 6 486 (6 708).
Sales in Europe were lower in the fourth quarter, but the same for the full
year. Sales in Asia were higher both in the fourth quarter and for the full
year.
Production of deep groove ball bearings was started early in the year in a new
SKF factory in Shanghai. The customer groups for these bearings are within the
electrical industry, where high quality is required to support Chinese local
demand as well as exports.
New business was gained in the growing application area of electric-power
steering systems, and also from the producers of electric motors for washing
machines such as ACC and Emerson Ceset.
Service Division
The operating result for the fourth quarter 2003 amounted to MSEK 431 (426),
resulting in an operating margin of 11.1% (10.5) on total sales. The result for
the full year 2003 amounted to MSEK 1 420 (1 418), resulting in an operating
margin of 9.7% (9.4) on total sales. The result has been affected by
restructuring expenses and impairments amounting to MSEK 45 in the fourth
quarter. The operating result for the full year, excluding these items, would
have been MSEK 1 465 with an operating margin of 10.0%.
External sales for the fourth quarter 2003 amounted to MSEK 3 508 (3 644), a
decrease of 3.7%. External sales for the full year 2003 amounted to MSEK 13 111
(13 501), a decrease of 2.9%. Total sales for the fourth quarter were MSEK 3 888
(4 061) and for the full year MSEK 14 643 (15 040).
Sales in Western Europe were slightly higher in the fourth quarter but unchanged
for the full year. Sales to Central and Eastern Europe and in Asia were
significantly higher both in the fourth quarter and for the full year. Sales in
North America were significantly lower in the fourth quarter and also lower for
the full year. Sales to Latin America were significantly higher both in the
fourth quarter and for the full year.
DEI, the Aberdeen-based branch of SKF Reliability Systems, was awarded a
contract for the provision of condition-monitoring services to Sigma 3, a joint
venture serving the North Sea interests of Shell Exploration and Production.
In 2003, the Division launched a global programme to address the changing market
needs and to strengthen its core Industrial Distribution business. Called "More
with SKF," the programme helps create a long-term sustainable business model and
development process for the SKF distributors.
SKF's e-business, based on endorsia.com and PTplace.com, increased in number of
order lines by nearly 30% in 2003 as global implementation continued to expand.
Three major supplier awards were received in the year in recognition of
outstanding logistic and technical support; from Siemens in Germany, from Mondi
in South Africa and from Cagill in Turkey.
Aero and Steel Division
The operating result for the fourth quarter 2003 amounted to MSEK -234 (60),
resulting in an operating margin of -16.3% (3.9) on total sales. The result for
the full year 2003 amounted to MSEK -167 (213), resulting in an operating margin
of -2.8% (3.4) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 242 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
75 with an operating margin of 1.2%.
External sales for the fourth quarter 2003 amounted to MSEK 837 (906), a
decrease of 7.6%. External sales for the full year 2003 amounted to MSEK 3 551
(3 741), a decrease of 5.1%. Total sales for the fourth quarter were MSEK 1 435
(1 558) and for the full year MSEK 6 016 (6 321).
Orders were received for prototypes for main shaft and gearbox bearings
involving the GE-Pratt Alliance and the Rolls-Royce engines for the A380
programme.
The helicopter business remained strong throughout the year. The new XLNT
bearing produced by Ampep Plc., a subsidiary in UK, has been widely accepted by
the helicopter industry. Ampep is the first company to successfully incorporate
ceramic coating into self-lubricating bearings.
Ovako Steel reported external sales of MSEK 1 660 (1 579). Total sales were MSEK
2 956 (2 963). The operating result was MSEK -307 (20). The result has been
affected by restructuring expenses and impairments amounting to MSEK 230 in the
fourth quarter. Excluding these items the operating result for the full year
would have been MSEK -77 with an operating margin of -2.6%.
The result in 2003 was adversely affected by a sharp increase in the cost of raw
materials, especially steel scrap, a continued weak demand for steel and a
negative currency effect. Price increases and surcharges were implemented during
the year in order to offset some of the steady increase in raw material prices.
Towards the end of the year, Ovako Steel launched the Ovahyd steel grade - a new
variant of the Ovatec(TM) air-hardening steel - for exacting hydraulic
applications.
Sale of shares
During the month of January 2004 SKF sold its 40% holding in Momentum, a Swedish
industrial distributor, for MSEK 88. The deal is expected to be concluded during
the first quarter of 2004 and the capital gain is estimated to MSEK 20.
Stock option programme
The Board decided that there will not be a stock option programme for 2004.
Previous Outlook statement
The Nine-month report 2003:
The market demand for the Group's products and services is expected to improve
slightly during the fourth quarter, with demand in Europe unchanged, higher in
North America and significantly higher in Asia.
Manufacturing will be increased in line with market demand to maintain a high
service level.
Overhead presentation from SKF
An overhead presentation will be published on SKF's website at the following
address: www.skf.com/portal/skf/home/investors (choose Presentations)
Cautionary statement
This report contains forward-looking statements that are based on the current
expectations of the management of SKF. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those implied in the forward-
looking statements as a result of, among other factors, changes in economic,
market and competitive conditions, changes in the regulatory environment and
other government actions, fluctuations in exchange rates and other factors
mentioned in SKF's latest 20-F report on file with the SEC (United States
Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk
Factors".
Goteborg, January 27, 2004
Aktiebolaget SKF
(publ.)
Tom Johnstone
President and CEO
Enclosures:
Consolidated financial information
Consolidated balance sheets
Consolidated statements of cash flow
Consolidated financial information - yearly and quarterly comparisons (Group and
Divisions/Segments)
The consolidated financial statements of the Group and the Parent company of AB
SKF are prepared in accordance with accounting principles generally accepted in
Sweden. For further details see note 1 in the SKF Annual Report incl.
Sustainability Report 2002. As of January 1, 2003 SKF implemented RR 29
"Employee Benefits" and RR25 "Segment Reporting". For further information, see
SKF First quarter report 2003.
The report has not been audited by the Company's auditors.
The SKF Annual Report including Sustainability Report 2003 will be published on
Wednesday March 17, 2004 and will be available at the Company as of that day.
The SKF's report on the First-quarter result 2004 will be published on Tuesday,
April 20, 2004.
Further information can be obtained from:
Lars G Malmer, Group Communication, tel: +46-31-3371541, +46-705-371541,
e-mail: lars.g.malmer@skf.com
Marita Bjork, Investor Relations, tel: +46-31-3371994, +46-705-181994,
e-mail: marita.bjork@skf.com
Aktiebolaget SKF, SE-415 50 Goteborg, Sweden, company reg.no. 556007-3495,
tel: +46-31-3371000, fax: +46-31-3372832, http://www.skf.com/
Enclosure 1
CONSOLIDATED FINANCIAL INFORMATION (MSEK)
Oct-Dec 2003 Oct-Dec 2002 Jan-Dec 2003 Jan-Dec 2002
Net sales 10 245 10 665 41 377 42 430
Cost of goods sold -8 029 -7 891 -32 022 -31 844
Gross profit 2 216 2 774 9 355 10 586
Selling and administrative expenses -1 637 -1 732 -6 175 -6 636
Other operating income/expenses - net -15 69 100 40
Result of associated companies 5 10 19 32
Operating profit 569 1 121 3 299 4 022
Operating margin, % 5.6 10.5 8.0 9.5
Financial income and expenses - net -90 -142 -506 -480
Profit before taxes 479 979 2 793 3 542
Taxes -62 -252 -698 -1 055
Profit after taxes 417 727 2 095 2 487
Minority interest -12 -8 -56 -21
Net profit 405 719 2 039 2 466
Earnings per share after tax, SEK 3.56 6.34 17.91 21.67
Diluted earnings per share after tax, SEK 3.56 6.34 17.91 21.67
Additions to tangible assets 520 471 1 379 1 442
Number of employees registered 38 700 39 739 38 700 39 739
Return on capital employed for the
12-month period ended December 31, % 14.2 17.1 14.2 17.1
Number of shares* December 31, 2003 December 31, 2002
Total number of shares 113 837 767 113 837 767
- whereof A-shares 21 372 327 32 383 377
- whereof B-shares 92 465 440 81 454 390
*Since the decision was taken to insert a share conversion right of A-shares to
B-shares at SKFs Annual General Meeting on April 18, 2002, 27 884 005 A-shares
has been converted to B-shares.
Enclosure 2
CONSOLIDATED BALANCE SHEETS (MSEK)
December 2003 December 2002**
Intangible assets 1 588 1 855
Tangible assets 11 138 12 418
Investments and long-term financial assets 836 1 762
Total capital assets 13 562 16 035
Inventories 8 429 8 987
Short-term assets 7 993 8 125
Short-term financial assets 6 342 5 530
Total short-term assets 22 764 22 642
TOTAL ASSETS 36 326 38 677
Shareholders' equity 15 164 16 365
Provisions for pensions and other postretirement benefits - 6 076
Provisions for post-employment benefits* 7 885 -
Provisions for deferred taxes 1 077 1 859
Other provisions 2 381 3 271
Total provisions 11 343 11 206
Long-term loans 1 246 1 777
Other long-term liabilities, including minority interest 611 635
Total long-term liabilities 1 857 2 412
Short-term loans 372 632
Other short-term liabilities 7 590 8 062
Total short-term liabilities 7 962 8 694
TOTAL EQUITY, PROVISIONS AND LIABILITIES 36 326 38 677
Changes in Shareholders' equity:
Opening balance January 1 16 365 16 224
Implementation of RR29/IAS19 -1 447 -
Cash dividend -911 -683
Net profit 2 039 2 466
Translation adjustments -882 -1 642
Closing balance 15 164 16 365
*)The balance sheet line "Provisions for post-employment benefits" complies with
RR29 "Employee benefits". For further
details, see SKF First Quarter Report 2003.
**)Reclassifications were made to December 2002 balance sheet to present the
Groups deferred tax assets and liabilities
as long term, being netted only on a long term basis. This reclassification
resulted in a decrease in total assets of 306.
Enclosure 3
CONSOLIDATED STATEMENTS OF CASH FLOW (MSEK)
Oct-Dec 2003 Oct-Dec 2002 Jan-Dec 2003 Jan-Dec 2002
Profit before taxes 479 979 2 793 3 542
Depreciation amortization and impairment 619 571 1 792 1 859
Net gain on sales of tangible assets and businesses
46 8 -74 -80
Profit from associated companies -5 -10 -19 -32
Taxes -113 -372 -930 -867
Changes in working capital 315 -112 -232 -82
Cash flow from operations 1 341 1 064 3 330 4 340
Investments in tangible assets and
businesses -532 -544 -1 502 -2 024
Sales of tangible assets and businesses 3 39 523 328
Cash flow after investments before
financing 812 559 2 351 2 644
Change in loans -13 -153 -492 -802
Change in pensions and other postretirement benefits
- -285 - -539
Change in post-employment benefits -2 - 74 -
Change in long-term financial assets 3 -66 -15 -167
Cash dividends, AB SKF shareholders - - -911 -683
Cash effect on short-term financial assets 800 55 1 007 453
Change in short-term financial assets
October 1 / January 1 5 590 5 572 5 530 5 387
Cash effect 800 55 1 007 453
Exchange rate effect -48 -97 -195 -310
December 31 6 342 5 530 6 342 5 530
Change in net interest-bearing liabilities
Opening Exchange Change in Acquired and Closing
balance rate effect items sold businesses balance
Loans, long- and short-term 2 409 -301 -492 2 1 618
Post-employment benefits 8 220 -409 74 - 7 885
Financial assets, long-term -509 51 -15 1 -472
short-term -5 530 195 -1 007 - -6 342
Net interest-bearing liabilities 4 590 -464 -1 440 3 2 689
Enclosure 4
CONSOLIDATED FINANCIAL INFORMATION - QUARTERLY COMPARISONS (GROUP)
(MSEK unless otherwise stated)
Full Full Full
year year year
2001 1/02 2/02 3/02 4/02 2002 1/03 2/03 3/03 4/03 2003
Net sales 43 370 10 665 11 053 10 047 10 665 42 430 10 541 10 532 10 059 10 245 41 377
Cost of goods sold -33 -8 155 -8 359 -7 439 -7 891 -31 -8 023 -8 149 -7 821 -8 029 -32
105 844 022
Gross profit 10 265 2 510 2 694 2 608 2 774 10 586 2 518 2 383 2 238 2 216 9 355
Gross margin, % 23.7 23.5 24.4 26.0 26.0 24.9 23.9 22.6 22.2 21.6 22.6
Selling & admin.
expenses -6 747 -1 642 -1 642 -1 620 -1 732 -6 636 -1 619 -1 543 -1 376 -1 637 -6 175
Other operating
income/ 104 34 -11 -52 69 40 40 100 -25 -15 100
/expenses - net
Result of
associated 12 1 7 14 10 32 5 5 4 5 19
companies
Operating profit 3 634 903 1 048 950 1 121 4 022 944 945 841 569 3 299
Operating margin, 8.4 8.5 9.5 9.5 10.5 9.5 9.0 9.0 8.4 5.6 8.0
%
Financial income &
expenses - net -514 -142 -123 -73 -142 -480 -142 -130 -144 -90 -506
Profit before 3 120 761 925 877 979 3 542 802 815 697 479 2 793
taxes
Profit margin
before 7.2 7.1 8.4 8.7 9.2 8.3 7.6 7.7 6.9 4.7 6.8
taxes, %
Taxes -909 -231 -284 -288 -252 -1 055 -225 -228 -183 -62 -698
Profit after taxes 2 211 530 641 589 727 2 487 577 587 514 417 2 095
Minority interest -44 -1 -5 -7 -8 -21 -15 -18 -11 -12 -56
Net profit 2 167 529 636 582 719 2 466 562 569 503 405 2 039
Earnings per share
after tax, SEK 19.04 4.64 5.58 5.11 6.34 21.67 4.94 4.99 4.42 3.56 17.91
Return on capital
employed for the
12-month period, % 14.9 14.8 15.3 16.0 17.1 17.1 17.4 17.0 16.5 14.2 14.2
Equity/assets 41.1 41.2 40.0 41.9 43.4 43.4 41.2 40.9 42.3 43.1 43.1
ratio, %
Net worth per
share, 143 140 133 141 144 144 135 130 130 133 133
SEK
Additions to
tangible 1 403 289 322 360 471 1 442 304 250 305 520 1 379
assets
Registered number
of employees 38 091 38 205 39 926 39 796 39 739 39 739 39 645 38 821 38 805 38 700 38 700
Enclosure 5
CONSOLIDATED FINANCIAL INFORMATION - QUARTERLY COMPARISONS (DIVISIONS/SEGMENTS)*
(MSEK unless otherwise stated)
Full Full Full
year year year
2001 1/02 2/02 3/02 4/02 2002 1/03 2/03 3/03 4/03 2003
Industrial Division
External Sales 9 966 2 493 2 513 2 339 2 397 9 742 2 536 2 519 2 323 2 336 9 714
Total sales 15 979 3 950 4 040 3 708 3 952 15 650 3 890 3 934 3 670 3 849 15 343
Operating result 1 665 376 432 360 457 1 625 370 352 339 373 1 434
Operating margin 10.4% 9.5% 10.7% 9.7% 11.6% 10.4% 9.5% 8.9% 9.2% 9.7% 9.3%
Operating assets and
liabilities, net 6 742 6 902 6 536 6 370 6 310 6 310 6 515 6 413 5 973 5 721 5 721
Registered number of
employees 10 525 10 753 10 647 10 644 10 639 10 639 10 661 10 720 10 679 10 607 10 607
Automotive Division
External Sales 13 436 3 457 3 604 3 194 3 228 13 483 3 441 3 415 3 142 3 110 13 108
Total sales 15 018 3 831 3 979 3 553 3 567 14 930 3 812 3 780 3 492 3 451 14 535
Operating result 407 123 197 110 93 523 174 178 79 3 434
Operating margin 2.7% 3.2% 5.0% 3.1% 2.6% 3.5% 4.6% 4.7% 2.3% 0.1% 3.0%
Operating assets and
liabilities, net 7 328 7 439 6 886 6 690 6 408 6 408 6 492 6 252 5 945 5 728 5 728
Registered number of
employees 9 994 9 993 10 012 9 995 9 943 9 943 9 912 9 551 9 548 9 410 9 410
Electrical Division
External Sales 1 948 493 504 459 479 1 935 502 459 450 445 1 856
Total sales 6 997 1 675 1 771 1 569 1 693 6 708 1 690 1 621 1 560 1 615 6 486
Operating result 303 73 109 96 141 419 80 83 98 -46 215
Operating margin 4.3% 4.4% 6.2% 6.1% 8.3% 6.2% 4.7% 5.1% 6.3% -2.8% 3.3%
Operating assets and
liabilities, net 3 329 2 970 2 828 2 820 2 793 2 793 2 810 2 706 2 627 2 477 2 477
Registered number of
employees 6 647 6 606 8 129 8 091 8 078 8 078 8 064 7 562 7 541 7 615 7 615
Service Division
External Sales 13 971 3 176 3 462 3 219 3 644 13 501 3 083 3 193 3 327 3 508 13 111
Total sales 15 554 3 539 3 858 3 582 4 061 15 040 3 493 3 575 3 687 3 888 14 643
Operating result 1 298 275 361 356 426 1 418 294 325 370 431 1 420
Operating margin 8.3% 7.8% 9.4% 9.9% 10.5% 9.4% 8.4% 9.1% 10.0% 11.1% 9.7%
Operating assets and
liabilities, net 2 812 3 090 2 928 2 839 2 759 2 759 2 830 2 867 2 694 2 655 2 655
Registered number of
employees 4 280 4 350 4 461 4 469 4 531 4 531 4 558 4 598 4 638 4 689 4 689
Aero and Steel
Division
External Sales 3 983 1 042 962 831 906 3 741 971 937 806 837 3 551
Total sales 6 629 1 732 1 628 1 403 1 558 6 321 1 681 1 561 1 339 1 435 6 016
Operating result 206 60 63 30 60 213 47 25 -5 -234 -167
Operating margin 3.1% 3.5% 3.9% 2.1% 3.9% 3.4% 2.8% 1.6% -0.4% -16.3% -2.8%
Operating assets and
liabilities, net 3 715 3 352 3 403 3 421 3 312 3 312 3 159 3 168 3 100 2 832 2 832
Registered number of
employees 5 264 5 153 5 343 5 202 5 162 5 162 5 110 5 058 5 002 4 978 4 978
*As of January 1, 2003, SKF implemented the Swedish accounting principle RR 25
"Segment Reporting". SKFs primary format
is business segments which SKF considers agree to the SKF operational divison
structure.
Previously published amounts have been restated to conform to the current Group
structure of 2003.
Operating external assets and external liabilities are the items that have been
allocated to the Divisions/Segments. Tax and interest-bearing items have been
excluded.