As the Board announced in January,
"During the first quarter we saw strong sales and demand growth. We also experienced significant headwinds in terms of cost inflation and currency impact, affecting our operating result by
Organic sales development in the quarter was 8.6%, with net sales of
We are already implementing measures across both Industrial and Automotive to compensate for rising input costs.
The Industrial business delivered strong results, with an adjusted operating margin of 16.3% (15.5%).
The Automotive business continues to perform well, with an adjusted operating margin of 8.9% (6.0%).
The first quarter is historically lower in terms of cash flow generation. The sharp increase in demand in the quarter also contributed to increased working capital. As a result, cash flow was
From this quarter, we will be reporting on our sustainability-related targets as an integrated part of our quarterly report. One of
We are also making progress on our ambitions to reduce CO2 emissions from our own operations.
We continue to capitalize on new ways of working and digitalizing throughout the organization. The sharp increase in demand in the quarter has necessitated an increase of around 200 temporary workers, predominantly in our factories. Permanent staff numbers were unchanged.
Demand has increased gradually since the trough in the second quarter of 2020. Net sales is expected to continue to grow, reaching pre-COVID levels in the second quarter of 2021: i.e. in line with levels reported in the second quarter of 2019.
After close to seven years as CEO, this will be my last quarterly report. To all colleagues, customers and stakeholders: thank you for your support during these years, making all we have done possible."
Key figures, SEKm | Q1 2021 | Q1 2020 |
Net sales | 19,865 | 20,085 |
Adjusted operating profit | 2,789 | 2,572 |
Adusted operating margin, % | 14.0 | 12.8 |
Operating profit | 2,699 | 2,268 |
Operating margin, % | 13.6 | 11.3 |
Adjusted profit before taxes | 2,586 | 1,856 |
Profit before taxes | 2,495 | 2,160 |
Net cash flow after investments before financing | -702 | 1,930 |
Adjusted earnings per share | 4.11 | 3.41 |
Basic earnings per share | 3.91 | 2.75 |
Net sales change y-o-y, % | Organic* | Structure | Currency | Total |
8.6 | 0.0 | -9.7 | -1.1 | |
Industrial | 5.4 | 0.0 | -9.4 | -4.0 |
Automotive | 16.7 | 0.0 | -10.5 | 6.2 |
*Price, mix and volume
Organic sales in local currencies, change, % | EMEA | |||
1.7 | -0.4 | 17.7 | 26.2 | |
Industrial | +/- | +/- | +++ | +++ |
Automotive | ++ | - | +++ | +++ |
Outlook and guidance
Demand for Q2 2021 compared to Q2 2020
Demand has improved gradually since the trough in the second quarter of 2020. Net sales is expected to continue to grow, reaching pre-COVID levels in the second quarter of 2021, i.e. in line with levels reported in the second quarter of 2019.
Guidance Q2 2021
Currency impact on the operating profit is expected to be around
Guidance 2021
Tax level excluding effect related to divested businesses: around 28%.
- Additions to property, plant and equipment: around
SEK 3,600 million .
As the Board announced in January,
A teleconference will be held on
Conference ID: 895705
International: +44 (0) 207 3936 2999
Website: https://investors.skf.com/en
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https://news.cision.com/skf/r/skf-q1-2021--strong-organic-growth-and-operating-profit--while-managing-cost-and-currency-headwinds,c3330725
https://mb.cision.com/Main/637/3330725/1405412.pdf
https://news.cision.com/skf/i/alrik-danielson,c2903187
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