Bearings manufacturer SKF (STO: SKFA), which is based in Goteborg, Sweden, reported sales for the first quarter increased by 8.6% year-over-year with net sales of SEK 19,865 million.
First-quarter operating earnings increased to 2.70 billion Swedish crowns ($321.6 million) versus 2.27 billion a year ago. SKF’s first quarter results were largely driven by a 16.7% increase in its automotive sector, which accounts for 30% of its group sales.
“Demand has increased gradually since the trough in the second quarter of 2020,” says SKF CEO Alrik Danielson. “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.”
Danielson says sales were significantly higher in Latin America and Asia, but relatively unchanged in Europe and North America.
After close to seven years as CEO, Thursday’s Q1 earnings report was Danielson’s last. In January, SKF announced Rickard Gustafson as its new president and CEO.