SKF reported sales of SEK63.4 billion (US$7.8 billion) for 2008, an increase of 8.2% over 2007 sales. Profit declined slightly to SEK4.74 billion (US$580 million).
For the fourth quarter, sales increased 8.2% while profit declined 25.9%.
"2008 was a very good year for SKF with record sales and profit. However market demand weakened considerably towards the end of the year. In the fourth quarter the automotive business continued to deteriorate and a negative trend was seen also for several industrial segments, said Tom Johnstone, president and CEO. SKF initiated actions to adapt its capacity and cost base globally to address this."
The fourth quarter included expenses for restructuring activities and other one-time items of around SEK 340 million, of which SEK 75 million are write downs and impairments. SKF will lower significantly the manufacturing level in the first quarter of 2009 to reflect both the new demand situation and to reduce inventory.