SKF2010Q1.pdfVIP

SKF First-quarter report 2010 Tom Johnstone, President and CEO: SKF delivered a very strong result in the quarter with better volume and higher manufacturing levels resulting in an operating margin of 11.8%. Demand developed positively during the quarter particularly within the automotive business which adversely affected our price/mix. We saw a very positive development of our business in Asia and Latin America and some improvement in North America. However, Europe still remains weak if we exclude our automotive business. Going forward into the second quarter we expect demand to be significantly higher than the same quarter last year and slightly higher sequentially. As a result of this demand picture we increased our manufacturing as the first quarter progressed which gave a good effect on our cost absorption, particularly in March. We will keep this manufacturing level during the second quarter.” Q1 2010 Q1 2009 Net sales, SEKm 14,446 14,849 Operating profit, SEKm 1,702 768 Operating margin, % 11.8 5.2 Profit before taxes, SEKm 1,504 531 Net profit, SEKm 1,070 394 Basic earnings per share, SEK 2.27 0.86 Note: some of these key figures were already published on 16 April 2010. The decrease of 2.7% in net sales for the quarter, in SEK, was attributable to: volume 5.3%, price/mix -0.3% and currency effects -7.7%. The quarter included expenses for restructuring activities of around SEK 90 million, mainly impacting the Industrial Division. Outlook for the second quarter of 2010 Sales development compared to secon