MRO Magazine

SKF releases half-year report 2021


Industry

August 20, 2021
By Maryam Farag


Industries

SKF has released its half-year report of 2021, showing that organic sales development in the quarter was just above 33 per cent, with net sales of SEK 20,735 million (SEK 16,599 million).

Sales were higher on all main geographical markets with organic growth of 91 per cent in Latin America, 40 per cent in EMEA, 27 per cent in North America and 19 per cent in APAC.

“The second quarter saw a record in adjusted operating profit of SEK 3,118 million (1,565 million) and an adjusted operating margin of 15.0 per cent (9.4 per cent).” said Rickard Gustafson, President and CEO, SKF.“The result was especially strong, given continued headwinds in the form of negative currency impact and rising input costs. Through mitigating actions, we have been able to compensate for approximately 50 per cent of this cost increase. We’ve done well to serve our customers under these circumstances, and we’re doing our outmost to capture additional growth opportunities.”

The industrial business delivered a record set of results, with an adjusted operating margin of 18 per cent (14 per cent). The automotive business delivered an adjusted operating margin of 7.6 per cent (-7.6 per cent).

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Cash flow generation in the quarter was SEK 509 million (negative 838 million), an improvement compared to last year and the last quarter.

Investments in factories are expected to reach SEK 3.8 billion for the year, 200 million higher than previous guidance.

These investments and consolidation efforts have, on an annual basis, realized SEK 1.1 billion of the five billion in savings is expected to generate by 2025.