GÖTEBORG, Sweden--(BUSINESS WIRE)--SKF (STO:SKFB)(STO:SKFA)(Pink Sheets:SKFRY)(LSE:SKFB):
Tom Johnstone, President and CEO:
“During the quarter SKF completed the acquisition of Kaydon which enables us to better support our customers with a more complete offer. Their sales and operating profit developed as planned and the integration into the Group is going very well.
Operational cash flow for the Group was good and sales in total developed in line with expectations sequentially and grew strongly compared to the weak fourth quarter in 2012. The mix was more negative than expected due to stronger automotive sales and industrial OEM sales. We continued to take steps to support our profitable growth. We gained a number of important new orders in all three business areas. We opened 4 new SKF Solution Factories in the quarter and now have 27 worldwide. Investment in R&D increased in the year and the number of patents was up over 10%. We have also announced the establishment of 2 new Global Technical Centres in Europe which will further strengthen our R&D activities.
Profit was heavily impacted in the fourth quarter by the provision for the expected fine from the European Commission and one-off costs primarily related to the acquisition of Kaydon and restructuring. It was also impacted by steps taken to reduce inventory and by the negative mix.
Looking forward we expect demand to be slightly higher compared to the first quarter last year and to the fourth quarter.”
|(Kaydon Corporation is included from 16 October 2013)||Q4 2013||Q4 2012||Full year 2013||Full year 2012|
|Net sales, SEKm||16,430||14,984||63,597||64,575|
|Operating loss/profit, SEKm||-1,547||1,221||3,693||7,314|
|Operating profit excl. one-time costs, SEKm||1,803||1,521||7,568||7,754|
|Operating margin, %||-9.4||8.1||5.8||11.3|
|Operating margin excl. one-time costs, %||11.0||10.2||11.9||12.0|
|Loss/profit before taxes, SEKm||-1,760||969||2,821||6,408|
|Net loss/profit, SEKm||-2,043||995||1,044||4,816|
|Basic earnings per share, SEK||-4.57||2.12||2.00||10.23|
The operating loss/profit for Q4 includes one-time costs of SEK 3,350 m (300), whereof SEK 3,000 m relates to a possible amount of a fine in relation to the ongoing investigation by the European Commission, SEK 260 m relates to the acquisition of Kaydon and SEK 90 m (300) to other one-time costs. The full year results include one-time costs of SEK 3,875 m (440).
|Net sales change y-o-y, in SEK, attributable to:|
|Full year 2013||-0.7%||0.0%||2.5%||-3.3%||-1.5%|
Sales in the fourth quarter in local currencies and excluding structure increased by 3.4% in Europe, by 3.8% in North America, by 10.5% in Latin America, by 14.7 % in Asia and by 15.8% in Middle East and Africa.
Manufacturing in the fourth quarter was higher compared to last year.
Sales for the full year in local currencies and excluding structure decreased by 2.7% in Europe and by 2.5% in North America. In Asia they increased by 1.6%, in Latin America by 10.3% and in Middle East and Africa by 3.3%.
Manufacturing for the full year was relatively unchanged compared to last year.
The Board has decided to propose a dividend of SEK 5.50 per share to the Annual General Meeting.
Outlook for the first quarter of 2014
Demand compared to the first quarter 2013
The demand for SKF’s products and services is expected to be slightly higher for the Group, Europe and North America. It is expected to be slightly lower in Latin America and higher in Asia Pacific. For Strategic Industries it is expected to be relatively unchanged, for Regional Sales and Service slightly higher and for Automotive higher.
Demand compared to the fourth quarter 2013
The demand for SKF’s products and services is expected to be slightly higher for the Group, Europe and North America. It is expected to be relatively unchanged in Asia Pacific and slightly lower in Latin America. For Regional Sales and Service and Automotive it is expected to be slightly higher and for Strategic Industries relatively unchanged.
Manufacturing Manufacturing is expected to be higher year over year and slightly higher compared to the fourth quarter.
Gothenburg, 28 January 2014
A teleconference will be held on 28 January at 14.00 CET, 13.00 (UK), 08.00 (US):
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You will find all information regarding SKF Year-end results 2013 on the IR website. investors.skf.com/quarterlyreporting
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 around 13.00 on 28 January 2014.
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 2013 were SEK 63,597 million and the number of employees was 48,401. www.skf.com
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