GOTHENBURG, Sweden,
Feb. 4, 2020 /PRNewswire/ --
Alrik Danielson, President and
CEO:
"2019 has been a solid year for SKF. We saw stable demand during
the first half of the year. During the last six months, we
maintained a strong operating result, despite falling demand. A
consistent focus on cost reduction, especially during the fourth
quarter, where cost reductions more than compensated for cost
inflation, has allowed us to continue to deliver solid results,
whilst continuing to invest in our factories and in R&D.
During the fourth quarter, we delivered a strong underlying
operating margin of 10.3% (10.4% last year) and an underlying
operating profit of SEK 2,181 million
(2,197).
We saw a drop in organic sales of 2.9%, with net sales of
SEK 21.2 billion. Sales were higher
in Asia, driven by strong demand
in China, slightly lower in
Europe, significantly lower in
North America and significantly
higher in Latin America.
The industrial business delivered an underlying margin of 13.3%,
higher than last year (12.9%), despite a drop in organic sales of
1.2%. Sales were significantly higher in Asia, relatively unchanged in Europe and Latin
America and significantly lower in North America.
The automotive business delivered an underlying margin of 2.4%
(3.8% last year), due to a fall in organic sales of 7.5%. Sales
were significantly lower in Europe
and North America, lower in
Asia and significantly higher in
Latin America.
During the fourth quarter we have taken steps to create a more
efficient structure for our support functions. The new way of
working and resulting organizational changes are being implemented
during 2020-2021 and will see the creation of regional centers of
excellence.
Investments supporting our regional manufacturing strategy
continue as planned and the recently announced ball bearing factory
in Xinchang is ramping up production during the first quarter, as
announced in June 2019.
The testing of our bearings with fibre optical load sensors has
moved over to the next stage, with equipped large-size bearings
soon to be deployed to a mine in northern Sweden. These bearings analyze loads in
real-time, giving customers and SKF even more insights into the
performance of rotating machinery.
In the first quarter of 2020, we expect to see lower volumes for
the Group, slightly lower for Industrial and lower for Automotive,
compared to Q1 2019.
SKF is well-positioned for the future. We have a track record of
strong financial performance, which has enabled us to pay down debt
and increase investments in manufacturing and R&D during 2019.
In recognition of this, the Board has proposed to increase the
dividend to SEK 6.25 per share."
Key
figures, SEKm
|
Q4
2019
|
Q4
2018
|
2019
|
2018
|
Net sales
|
21,208
|
21,192
|
86,013
|
85,713
|
Operating
profit
|
1,910
|
2,902
|
9,395
|
11,049
|
Operating margin,
%
|
9.0
|
13.7
|
10.9
|
12.9
|
Profit before
taxes
|
1,722
|
2,636
|
8,469
|
10,188
|
Net cash flow after
investments before
financing
|
701
|
4,259
|
4,953
|
8,326
|
Basic earnings per
share
|
2.27
|
4.63
|
12.2
|
16.0
|
|
Net sales change
y-o-y, %, Q4
|
Organic
|
Structure
|
Currency
|
Total
|
SKF Group
|
-2.9
|
-1.8
|
4.8
|
0.1
|
Industrial
|
-1.2
|
-2.6
|
4.6
|
0.8
|
Automotive
|
-7.3
|
0.2
|
5.3
|
-1.8
|
|
Net sales change
y-o-y, %, 2019
|
Organic
|
Structure
|
Currency
|
Total
|
SKF Group
|
-2.0
|
-2.3
|
4.7
|
0.4
|
Industrial
|
0.1
|
-3.3
|
4.7
|
1.5
|
Automotive
|
-6.8
|
0.1
|
4.3
|
-2.4
|
|
Organic sales
change in local currencies,
per region y-o-y, %, Q4
|
Europe
|
North
America
|
Latin
America
|
Asia
|
Middle East &
Africa
|
SKF Group
|
-3.0
|
-15.9
|
8.2
|
4.3
|
13.4
|
Industrial
|
+/-
|
---
|
+/-
|
+++
|
+++
|
Automotive
|
---
|
---
|
+++
|
--
|
+++
|
|
Organic sales
change in local currencies,
per region y-o-y, %, 2019
|
Europe
|
North
America
|
Latin
America
|
Asia
|
Middle East &
Africa
|
SKF Group
|
-1.9
|
-7.8
|
5.6
|
0.7
|
1.8
|
Industrial
|
+/-
|
--
|
+/-
|
+
|
+/-
|
Automotive
|
--
|
---
|
+++
|
--
|
+++
|
Outlook and guidance
Demand for Q1 2020 compared to Q1 2019
The demand for SKF's products and services is expected to be
lower for the Group, including slightly lower demand for Industrial
and lower demand for Automotive. Demand is expected to be slightly
higher in Asia, lower in
Europe, significantly lower in
North America and significantly
higher in Latin America.
Guidance Q1 2020
- Financial net: SEK -225
million
- Currency impact on the operating profit is expected to be
around SEK +60 million compared with
Q1 2019, based on exchange rates per 31
December 2019.
Guidance 2019
- Tax level excluding effect related to divested businesses:
around 28%.
- Additions to property, plant and equipment: around SEK 3,300 million.
A teleconference will be held on 4
February 2020 at 14:00 (CET):
Conference ID: SKF or 3662219
Standard International: +44 (0) 2071 928000
Sweden: +46 (0)8 5069 2180
United States:
+1-631-510-7495
Website: http://investors.skf.com/en/result-centre
Aktiebolaget SKF
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 4 February
2020 at 13:00.
CONTACT:
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
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SOURCE SKF