Second Quarter Results
SKF, the Swedish ball-bearing maker, has announced its second quarter results, revealing a net profit of 2.04 billion Swedish kronor ($199.6 million), a significant increase from SEK493 million in the same period last year. Sales also saw a notable rise, reaching SEK27.12 billion, a growth of 15%. These figures surpassed the expectations of analysts polled by FactSet, who had predicted a net profit of SEK2.1 billion on sales of SEK26.98 billion.
Moreover, SKF reported an adjusted operating margin of 13.3%, up from 10.5%. This improvement puts the company on track towards its target margin of 14%.
The organic sales growth for the quarter was 8%, in line with SKF’s guidance of high single-digit growth. The company experienced strong demand in Europe and Asia across various sectors, including aerospace, electrical vehicles, and railway.
Third Quarter Outlook
While SKF expects sales to continue rising in the third quarter, it anticipates a slightly slower pace compared to the previous quarter. The company foresees mid single-digit organic sales growth for the year. Although Chief Executive Rickard Gustafson acknowledges the potential impact of volatility and geopolitical uncertainty on the markets, he remains confident in SKF’s performance.
Looking ahead, SKF maintains its full-year outlook, projecting high single-digit organic sales growth when compared to 2022.