GOTHENBURG, Sweden,
Oct. 27, 2020 /PRNewswire/ --
Alrik Danielson, President
and CEO:
"SKF's transformation into a more customer-focused, innovative
and lean business continues. Our strong results in the third
quarter illustrate that we are delivering on the implementation of
our strategy, including new ways of working, developing better,
more attractive customer offers as well as making our manufacturing
closer and more responsive to customer needs.
Despite an organic sales decline of 5.1% compared to last year,
we improved our adjusted operating margin to a very strong 13.3%
(11.3%).
Net sales at SEK 18.6 billion were
lower than last year but illustrating a sequential rebound in
demand since the significantly lower levels seen during the second
quarter. Cash flow during the quarter was SEK 2,266 million, driven mainly by reduced
working capital.
Sales in Europe decreased by
12.5% organically. Sales in North
America decreased by 11.9%, Latin
America increased by 4.6% and Asia increased by 7.2%.
The Industrial business delivered an adjusted operating margin
of 15.8% (13.9%), with organic sales down 6.9%. The Automotive
business delivered an adjusted operating margin of 7.4% (4.6%),
with organic sales down 0.7%.
We are accelerating our efforts to regionalize, consolidate and
modernize our manufacturing footprint. During the quarter we
announced an investment totalling SEK 550
million in North America,
bringing world-class processes and automation to our slewing
bearing facility in Sumter, as
well as locating taper roller bearing manufacturing in Mexico, from China. These investments will make our offer
and position in North America even
stronger. The resulting improvements in flexibility and service
levels enables us to consolidate the factories in Avon, Ohio and North
Charleston, South Carolina into the Sumter factory.
We also continue to adjust our ways of working and the structure
of our business, resulting in restructuring costs of SEK 462 million during the quarter. However
difficult these decisions are to make, this flexibility also
enables us to adjust our business swiftly, whilst also investing in
the competences needed for the future.
Uncertainty surrounding the near-term economic climate makes it
difficult to provide a reliable demand outlook for the fourth
quarter. As a result of this uncertainty in the economy, the Board
has decided not to call for an Extraordinary General Meeting with
the purpose of proposing an additional dividend for 2019.
The transformed SKF of 2020 is well-positioned to respond to
differing demand scenarios. We will continue to invest in making
our offers stronger, our operations leaner and our innovation pace
higher."
Key figures, SEKm
unless otherwise stated
|
Q3
2020
|
Q3
2019
|
Jan-Sep
2020
|
Jan-Sep
2019
|
Net sales
|
18,596
|
21,039
|
55,280
|
64,805
|
Adjusted operating
profit
|
2,475
|
2,380
|
6,612
|
7,956
|
Adjusted operating
margin, %
|
13.3
|
11.3
|
12.0
|
12.3
|
Operating
profit
|
1,922
|
2,288
|
4,859
|
7,485
|
Operating margin,
%
|
10.3
|
10.9
|
8.8
|
11.6
|
Adjusted profit
before taxes
|
2,273
|
2,135
|
5,909
|
7,217
|
Profit before
taxes
|
1,720
|
2,044
|
4,156
|
6,747
|
Net cash flow after
investments before financing
|
2,266
|
2,120
|
3,358
|
4,252
|
Adjusted earnings per
share
|
3.80
|
3.04
|
9.94
|
10.97
|
Basic earnings per
share
|
2.59
|
2.84
|
6.09
|
9.93
|
Net sales change
y-o-y, %, Q3
|
Organic
|
Structure
|
Currency
|
Total
|
SKF Group
|
-5.1
|
-
|
-6.5
|
-11.6
|
Industrial
|
-6.9
|
-
|
-6.2
|
-13.1
|
Automotive
|
-0.7
|
-
|
-7.2
|
-7.9
|
Net sales change
y-o-y, %, Jan-Sep 2020
|
Organic
|
Structure
|
Currency
|
Total
|
SKF Group
|
-13.2
|
-
|
-1.5
|
-14.7
|
Industrial
|
-10.3
|
-
|
-1.4
|
-11.7
|
Automotive
|
-20.3
|
-
|
-2.0
|
-22.3
|
Organic sales
change in local currencies, per region y-o-y,
%, Q3
|
Europe
|
North
America
|
Latin
America
|
Asia
|
Middle East
& Africa
|
SKF Group
|
-12.5
|
-11.9
|
4.6
|
7.2
|
-2.9
|
Industrial
|
---
|
---
|
++
|
++
|
--
|
Automotive
|
---
|
--
|
++
|
+++
|
+++
|
Organic sales
change in local currencies, per region y-o-y, %,
Jan-Sep 2020
|
Europe
|
North
America
|
Latin
America
|
Asia
|
Middle East
& Africa
|
SKF Group
|
-17.6
|
-18.0
|
-10.6
|
-4.3
|
-3.4
|
Industrial
|
---
|
---
|
-
|
-
|
--
|
Automotive
|
---
|
---
|
---
|
---
|
+++
|
Outlook and guidance
Demand for Q4 2020 compared to Q4 2019
The industries and regions in which SKF operates are being
impacted by initiatives by authorities and by SKF's customers
related to the spread of the Covid-19 virus.
As a result of this uncertainty, it is not feasible to provide a
reliable demand guidance for the fourth quarter.
Guidance Q4 2020
- Financial net: SEK -200
million
Guidance 2020
- Tax level excluding effects related to divested businesses:
around 29%.
- Additions to property, plant and equipment: around SEK 3,300 million.
A Webcast will be held on 27 October
2020 at 14:00 (CET):
Please use the following link to join the Webcast:
https://bit.ly/353iirx.
Website:
http://investors.skf.com/en/reports-and-presentations
Aktiebolaget SKF (publ)
This is information that AB SKF is obliged to make public
pursuant to the EU Market Abuse Regulation and the Securities
Markets Act. The information was submitted for publication, through
the agency of the contact person set out above, at 13:00 CET on 27 October
2020.
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
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/skf/r/skf-nine-month-report-2020--strategy-implementation-continues-to-drive-strong-results,c3226043
The following files are available for download:
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