SKF Reports Increased Sales
SKF reports an increase in sales of 16.4% for the fourth quarter and 11.8% for the full year, measured in local currencies and compared to last year. The operating margin was 10.7% for the fourth quarter and 10% for the full year.
Inventories as a percentage of annual sales were 20%. The Board proposes an increase in the dividend of 20% to SEK 12. The Board also proposes a share split 5:1 followed by a mandatory redemption whereby every fifth share is redeemed for SEK 25. The redemption amounts to MSEK 2 846. This combined with the proposal dividend will be a total of MSEK 4 212.
- The SKF Group reports a profit before taxes for the fourth quarter 2004 of MSEK 1 170 (479). The fourth quarter 2003 included restructuring expenses and impairments of MSEK 487. The profit before taxes for the full year 2004 was MSEK 4 152 (2 793).
- Net profit for the fourth quarter amounted to MSEK 868 (405). Net profit for the full year was MSEK 2 959 (2 039).
- Earnings per share for the fourth quarter were SEK 7.62 (3.56), and for the full year, SEK 25.99 (17.91).
- Net sales for the fourth quarter amounted to MSEK 11 536 (10 245), and for the full year to MSEK 44 826 (41 377).
The operating profit for the fourth quarter 2004 was MSEK 1 240 (569). The fourth quarter 2003 included restructuring expenses and impairments of MSEK 487. Operating profit for the full year was MSEK 4 499 (3 299). As part of ongoing business activities, some MSEK 80 were carried as an expense in the fourth quarter owing to impairment of fixed assets and measures to reduce costs. The operating margin for the fourth quarter of 2004 amounted to 10.7% (5.6), and for the full year to 10.0% (8.0). Cash flow, after investments before financing, for the fourth quarter was MSEK 555 (812), and for the full year, MSEK 2 176 (2 351), including the acquisition price of Willy Vogel AG in the third quarter MSEK 678.
The increase of 12.6% in net sales for the fourth quarter, in SEK, was attributable to: volume 10.2%, structure 2.0%, price/mix 4.2% and currency effect -3.8%.
For the full year, the increase of 8.3%, in SEK, was attributable to:
volume 8.3%, structure 1.1%, price/mix 2.4% and currency effect -3.5%.
Sales for the SKF Group, calculated in local currencies, increased by 16.4% in the fourth quarter and 11.8% for the full year, compared to the same periods last year.
In Europe and North America, sales were significantly higher in the fourth quarter and higher for the full year. In Asia and Latin America, sales were significantly higher for the fourth quarter and the full year.
The manufacturing level for the fourth quarter 2004 was slightly higher compared to the previous quarter, but significantly higher than for the same quarter previous year.
Outlook for the first quarter 2005
The market demand for SKF’s products and services in the first quarter of 2005 is expected to be higher in Europe, relatively unchanged in North America and significantly higher in both Asia and Latin America.
The manufacturing level will be maintained to ensure a good service level throughout the summer.
The SKF Group is the leading global supplier of products, customer solutions, and services in the business of rolling bearings and seals. The Group's main competencies include technical support, maintenance services, condition monitoring and training. SKF also holds an increasingly important position in the market for linear motion products, as well as high precision bearings, spindles and spindle services for the machine tool industry, and is an established producer of bearing steel.
The SKF business is organized into five divisions; Industrial, Automotive, Electrical, Service, and Aero and Steel. Each division serves a global market, focusing on its specific customer segments.
Source: SKF Group