"Review of the second quarter
In the second quarter we saw organic revenue growth above 5%, driven by a general strong demand in most regions, especially within targeted high-growth segments, a somewhat higher automotive sales than anticipated and continued price realization.
Growth in Industrial was 6%, with Automotive delivering growth of 3%. Sales to targeted high-growth segments including railway, automation, agriculture, food and beverage continue to develop at a fast pace, with double-digit organic growth.
Net sales were
Our adjusted operating profit fell to
The margin development in the quarter was largely a consequence of exceptionally challenging circumstances in April and May. In these two months, the war in
Going forward, we maintain our emphasis on controlling costs and increasing prices, delivering continued stronger price realization quarter by quarter.
Cash flow from operations improved sequentially and was
Delivering on our strategy
We continue to focus on creating a more customer centric, profitable, faster growing and leaner
The second quarter saw the launch of the RecondOil Box, making our technology available to a wider market. We have already recorded sales of 400 units, with a fast-growing orderbook, especially within heavy industries and energy.
When it comes to factory consolidation, we have announced a further two site closures during the first half of the year. We also completed our previously announced controlled exit from
To further strengthen and complement our existing industrial seals offer, we have signed an agreement to acquire Tenute, an Italian seals manufacturer.
As we move to the next phase of executing on our strategy, two changes to Group Management have been announced this morning.
Outlook
Looking into the third quarter of 2022, we expect a high single-digit organic sales growth, with an expected recovery in Automotive demand compared to the same quarter last year.
We expect that the high level of volatility in the markets continues with the ongoing war in
Key figures, SEKm unless otherwise stated | Q2 2022 | Q2 2021 | Half year 2022 | Half year 2021 |
Net sales | 23,655 | 20,735 | 46,597 | 40,600 |
Adjusted operating profit | 2,473 | 3,118 | 5,531 | 5,907 |
Adjusted operating margin, % | 10.5 | 15.0 | 11.9 | 14.5 |
Operating profit | 1,581 | 2,878 | 4,534 | 5,577 |
Operating margin, % | 6.7 | 13.9 | 9.7 | 13.7 |
Adjusted profit before taxes | 1,990 | 3,040 | 4,979 | 5,626 |
Profit before taxes | 1,097 | 2,801 | 3,982 | 5,296 |
Net cash flow from operating activities | 1,293 | 1,372 | 1,022 | 1,503 |
Basic earnings per share | 1.08 | 4.59 | 5.44 | 8.50 |
Adjusted earnings per share | 2.90 | 5.11 | 7.49 | 9.23 |
Net sales, change y-o-y, %, Q2 | Organic1) | Structure | Currency | Total |
5.4 | -1.9 | 10.6 | 14.1 | |
Industrial | 6.4 | -1.9 | 10.5 | 15.0 |
Automotive | 2.7 | -1.9 | 11.1 | 11.9 |
1) Price, mix and volume
Net sales, change y-o-y, %, Half year | Organic1) | Structure | Currency | Total |
6.1 | -1.2 | 9.8 | 14.7 | |
Industrial | 8.7 | -1.3 | 9.9 | 17.3 |
Automotive | 0.0 | -1.0 | 9.7 | 8.7 |
1) Price, mix and volume
Organic sales in local currencies, change y-o-y, %, Q2 | The | |||
5.6 | 8.7 | -8.3 | 34.7 | |
Industrial | +++ | ++ | -- | +++ |
Automotive | - | ++ | --- | +++ |
Organic sales in local currencies, change y-o-y, %, Half year | The | |||
8.9 | 8.1 | -8.4 | 24.7 | |
Industrial | +++ | +++ | - | +++ |
Automotive | +/- | ++ | --- | +++ |
Outlook and guidance
Demand for Q3 2022 compared to Q3 2021
Looking into the third quarter of 2022, we expect a high single-digit organic sales growth, with an expected recovery in Automotive demand compared to the same quarter last year.
We expect that the high level of volatility in the markets continues with the ongoing war in
Guidance for Q3 2022
Currency impact on the operating profit is expected to be around
Guidance 2022
- For the full year 2022, we expect an organic sales growth of about 4-8%.
- Tax level excluding effects related to divested businesses: around 28%.
-
Additions to property, plant and equipment: around
SEK 5 billion .
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