"The second quarter saw a record in adjusted operating profit of
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% 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.
Organic sales development in the quarter was just above 33%, with net sales of
The Industrial business delivered a record set of results, with an adjusted operating margin of 18.0% (14.0%). The Automotive business delivered an adjusted operating margin of 7.6% (-7.6%).
Cash flow generation in the quarter was
We continue to invest in and consolidate our manufacturing footprint. Since 2019 we have permanently closed six sites and are currently in the process of closing an additional 11. Regretfully, some of these initiatives have a negative impact on some employees which we try to mitigate to the extent possible. Nevertheless, they are necessary to align our presence and capabilities with customer demand and, thereby enabling growth opportunities.
Investments in our factories are expected to reach
These investments and consolidation efforts have, on an annual basis, realized
We are moving towards a more sustainable future and we already have an ambitious net zero CO2 emissions target from our own operations by 2030. By also committing to the Science Based Targets Initiative, we're now taking steps to further increase our ambition and transparency levels throughout our supply chain. This will also ensure that our efforts are fully aligned with the ambitions of the Paris Agreement.
The record high operating result for the quarter is a proof point on
I'm thrilled and eager to embark on the exciting journey that lies ahead of us!
Looking ahead, demand is expected to remain strong but there is also uncertainty related to both Covid and to the supply situation. For the third quarter we expect an organic growth of about 10 percent compared to Q3 2020."
Key figures, SEKm | Q2 2021 | Q2 2020 | Half year 2021 | Half year 2020 |
Net sales | 20,735 | 16,599 | 40,600 | 36,684 |
Adjusted operating profit | 3,118 | 1,565 | 5,907 | 4,137 |
Adjusted operating margin, % | 15.0 | 9.4 | 14.5 | 11.3 |
Operating profit | 2,878 | 669 | 5,577 | 2,937 |
Operating margin, % | 13.9 | 4.0 | 13.7 | 8.0 |
Adjusted profit before taxes | 3,040 | 1,476 | 5,626 | 3,635 |
Profit before taxes | 2,801 | 580 | 5,296 | 2,436 |
Net cash flow after investments before financing | 509 | -838 | -193 | 1,902 |
Basic earnings per share | 4.59 | 0.75 | 8.50 | 3.50 |
Adjusted earnings per share | 5.11 | 2.72 | 9.23 | 6.13 |
Net sales change y-o-y, %, Q2 | Organic | Structure | Currency | Total |
33.2 | - | -8.3 | 24.9 | |
Industrial | 21.7 | - | -7.9 | 13.8 |
Automotive | 75.9 | - | -9.8 | 66.1 |
Net sales change y-o-y, %, Half year | Organic | Structure | Currency | Total |
19.6 | - | -8.9 | 10.7 | |
Industrial | 13.1 | - | -8.6 | 4.5 |
Automotive | 39.2 | - | -10.2 | 29.0 |
Organic sales change in local currencies, per region y-o-y, %, Q2 | EMEA | |||
39.8 | 27.2 | 91.0 | 19.1 | |
Industrial | +++ | +++ | +++ | +++ |
Automotive | +++ | +++ | +++ | +++ |
Organic sales change in local currencies, per region y-o-y, %, Half year | EMEA | |||
18.0 | 11.8 | 42.9 | 22.4 | |
Industrial | +++ | +++ | +++ | +++ |
Automotive | +++ | +++ | +++ | +++ |
Outlook and guidance
Demand for Q3 2021 compared to Q3 2020
Demand is expected to continue to grow and we expect an organic growth of about 10% for the third quarter compared to Q3 2020
Guidance Q3 2021
Currency impact on the operating profit is expected to be around
Guidance 2021
- Tax level excluding effects related to divested businesses: around 28%.
-
Additions to property, plant and equipment: around
SEK 3,800 million . Previous guidance was aroundSEK 3,600 million
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