Gothenburg, 16 October 2015:
Alrik Danielson, President and CEO:
“The expected weakening of market demand that we flagged for in July
materialised and gathered pace during the quarter, especially in Asia and North
America. As a result, sales in local currency declined by 5%. Production rates
were reduced during the quarter and inventories were kept under control. Our
financial performance was impacted by the lower sales volumes.
Agreements have been reached with almost all of the 1 500 white-collar staff
that is part of our cost reduction programme. Given current market conditions,
these actions alone are, however, not sufficient and we will continue our cost
reduction activities across the Group.
In Europe, we saw growth in the railway sector but significantly weaker demand
in both the energy and metals sectors. In North America and Asia, overall
industrial demand was significantly lower, with the exception of the energy
sector in Asia, which saw significant growth.
Our automotive business grew in line with overall market development in Europe
but not in North America.
The Automotive Market profit improvement programme is progressing, with a more
detailed update to be presented at our upcoming Capital Markets Day.
Divestments of non-core businesses continued, with the sale of Canfield
Technologies. The proceeds are being used to strengthen the balance sheet and to
be reinvested in our core business.
Entering the fourth quarter, we expect the macro-economic uncertainty to
continue and as a consequence we expect demand in the fourth quarter to be
slightly lower sequentially and lower year-over-year. We are adjusting our
production levels accordingly.”
Key figures, SEKm Q3 2015 Q3 2014 YTD 2015 YTD 2014
Net sales 18 367 17 787 57 782 52 476
Operating profit excl. one-time 1 976 2 092 6 929 6 214
items
Operating margin excl. one-time 10.8 11.8 12.0 11.8
items, %
One-time items in operating -151 -19 -1 000 -21
profit
Operating profit 1 825 2 073 5 929 6 193
Operating margin, % 9.9 11.7 10.3 11.8
Profit before taxes, excl. 1 629 1 846 6 231 5 496
operating and financial one-time
items
Profit before taxes 1 348 1 827 5 181 5 375
Net cash flow after investments 1 808 1 476 4 450 11
before financing
Key figures 30 Sep 30 Jun 30 Sep
2015 2015 2014
Net working capital, % of annual sales 29.7 30.9 32.4
ROCE for the 12-month period, % 11.9 12.6 8.5
Net debt/equity, % 114.2 113.4 132.5
Net debt/EBITDA 2.9 2.8 4.5
Net sales change y-o-y, %: Organic Structure Currency Total
Q3 2015 -4.7 -0.8 8.8 3.3
YTD -1.8 -0.3 12.2 10.1
Organic sales change Europe North Latin Asia Middle East
in local currencies, America America & Africa
per region y-o-y, %:
Q3 2015 -0.7 -10.8 0.9 -7.8 12.2
YTD 0.4 -6.4 1.1 -2.5 14.0
Outlook for the fourth quarter 2015
Demand compared to the fourth quarter 2014
The demand for SKF’s products and services is expected to be lower for the Group
where demand for the Auto motive Market is expected to be relatively unchanged,
while demand for the Specialty Business is expected to be slightly lower and
demand for the Industrial Market is expected to be lower. Split by markets,
demand is expected to be relatively unchanged in Europe and Latin America and
significantly lower in North America and Asia.
Demand compared to the third quarter 2015
The demand for SKF’s products and services is expected to be slightly lower for
the Group where demand for the Industrial Market and the Automotive Market is
expected to be slightly lower while demand for the Specialty Business is
expected to be relatively unchanged. Split by markets, demand is expected to be
relatively unchanged in Europe and slightly lower in North America, Latin
America and Asia.
A teleconference will be held on 16 October 2015 at 14:00 (CEST):
SE: +46 8 5033 6538
UK: +44 20 3427 1912
US: +1 212 444 0896
You will find all information regarding SKF Nine-month report 2015 on the IR
website.
investors.skf.com/quarterlyreporting (http://www.skf.com/group/investors/reports
/
year-end-report-2014)
Aktiebolaget SKF
(publ)
AB SKF is required to disclose the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 12:00 on 16 October 2015.
For further information, please contact:
MEDIA HOTLINE: 46 31 337 2400
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
Patrik Stenberg, +46 31-337 2104; +46 705-472 104; patrik.stenberg@skf.com
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication
systems, and services which include technical support, maintenance and
reliability services, engineering consulting and training. SKF is represented in
more than 130 countries and has around 15,000 distributor locations worldwide.
Annual sales in 2014 were SEK 70 975 million and the number of employees was 48
593. www.skf.com
® SKF is a registered trademark of the SKF Group.
SKF nine-month report 2015
| Source: SKF, AB
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