SKF Nine-month report 2003 -- Continued good margin and a

GOTEBORG, Sweden, Oct. 14, 2003 (PRIMEZONE) -- SKF (Other OTC:SKFRY) reports an operating margin of 8.4% for the third quarter 2003, a continued increase in sales in local currency, a strong cash flow and a positive price/mix development. To support the company's targets, programmes have been initiated to reduce costs and tangible assets and to increase efficiency.

The SKF Group reports a profit before taxes for the third quarter 2003 of MSEK 697 (877). The profit for the first nine months of 2003 was MSEK 2 314 (2,563).

Earnings per share for the third quarter were SEK 4.42 (5.11), and for the first nine months, SEK 14.35 (15.33).

Net sales for the third quarter amounted to MSEK 10,059 (10,047) and for the first nine months to MSEK 31,132 (31,765).

Total sales, calculated in local currencies, were unchanged in Europe in the third quarter 2003 compared to the same period last year. In North America sales were higher compared to last year, and in the Asian region sales were significantly higher than a year ago.

A programme to restructure Ovako Steel has been initiated. In addition, to further increase the efficiency in the Group, some other restructuring activities have been identified. The cost estimated to approximately MSEK 300 and the impairment of assets estimated to MSEK 200 will be charged to the fourth quarter 2003.

Outlook

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.

Summary

- The operating profit for the third quarter was MSEK 841 (950). The figure for the first nine months was MSEK 2 730 (2,901).

- The operating margin for the SKF Group for the third quarter amounted to 8.4% (9.5), and for the first nine months to 8.8% (9.1).

- Cash flow after investments before financing for the third quarter was MSEK 982 (1,368), and for the first nine months MSEK 1,539 (2,085).

- The increase of 0.1% in net sales for the third quarter was attributable to: structure 0.2%, volume 4.2%, price/mix 1.2% and currency effect -5.5%. For the first nine months, the decrease of 2.0% was attributable to: structure 0.4%, volume 4.5%, price/mix 1.0% and currency effect -7.9%.

- Net profit for the third quarter amounted to MSEK 503 (582). Net profit for the first nine months was MSEK 1,634 (1,747).



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, www.skf.com

SKF Nine-month report 2003 -- Continued good margin and a strong cash flow

Tags