The 2020 Mid-Year Economic Update_long

SKF Group Sales Grow 8.3% in First Half

The SKF Group reported a sales increase of 5% for the second quarter of 2006. For the first half of the year, sales were up 8.3%.



Sales for the SKF Group (excluding Ovako Steel in 2005) were higher in Europe, slightly higher in North America and significantly higher in Asia. Sales in Latin America were unchanged.



The manufacturing level for the second quarter of 2006 was unchanged compared with the first quarter 2006, and slightly higher than the same period last year.



Outlook for 3Q
The market demand for SKF’s products and services in the third quarter 2006 is expected to be slightly higher compared with the second quarter 2006. The demand is expected to be higher in Europe, significantly higher in Asia, and to remain on a high level in North America and Latin America. The manufacturing outlook for third quarter 2006 will be unchanged compared with the second quarter 2006, while lower in absolute terms due to normal seasonality.



Industrial Division
Sales for the second quarter for the industrial division were $589.75 million, an increase of 10.8%. Sales for the first half-year were $1.179 billion, an increase of 15.6%.



Sales were higher in Europe and significantly higher in North America and Asia. Segments that showed significantly higher sales were Food and Beverage, Medical, Energy, Material Handling and Aerospace.



SKF launched several new solutions for wind energy.



Service Division
Sales for the second quarter were $600.4 million, an increase of 6.9%. Sales for the first half of the year were $1.194 billion, an increase of 14.9%. Sales were higher in Europe, significantly higher in Asia, lower in North America and unchanged in Latin America. Sales in Middle East and Africa were significantly higher.



Automotive Division
Sales for the second quarter were $659.1 million, an increase of 3.3%. Sales for the first half-year were $1.313 billion, an increase of 8%. Sales for the Automotive Division as a whole, measured in local currencies, were unchanged.



Sales to the car and light-truck industry were lower in Europe and significantly lower in North America. Sales to the heavy truck industry were unchanged in Europe and significantly higher in North America. Sales to the vehicle service market were significantly higher in Europe and Asia and slightly lower in North America. Sales to the electrical industry in Europe were significantly lower. Sales to the producer of two-wheelers in Asia were relatively unchanged.


For more details on SKF’s first-half performance, including details for all divisions and information on acquisitions and divestitures, click here.

Related Links
SKF to Buy Austrian Industrial Seals Co.
SKF Buys Industrial Seals Co; On Acquisition Trail in Europe

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