STOCKHOLM--Sweden's SKF AB (SKF-B.SK) Tuesday said it expects
overall demand for its products and services to stay flat in the
third quarter as it reported a 7.4% jump in second quarter net
profit driven by higher sales.
SKF, the world's biggest maker of ball bearings and a bellwether
for the short-cycle engineering sector, said net profit rose to
1.16 billion Swedish kronor in the second quarter from 1.08 billion
kronor a year earlier, undershooting a 1.25 billion kronor average
forecast by analysts polled by FactSet.
"Looking forward and taking account of the continued uncertainty
in the global market place we expect that in the third quarter
overall demand for our products and services will stay on the same
level," Chief Executive Tom Johnstone said in a statement.
SKF, a global supplier to the automotive and energy sectors,
said steps to improve its price mix had positive results in the
second quarter.
The Gothenburg-based company, which generates nearly half of its
sales in Europe and a quarter in Asia, said European demand for its
products and services is expected to be relatively unchanged in the
third quarter compared to the second quarter. Demand is forecast to
be slightly higher in North America and Asia, but slightly lower in
Latin America, SKF said.
Manufacturing is expected to be slightly higher year over year
and relatively unchanged compared to the second quarter.
SKF's ball bearings are used to reduce rotational friction in
parts in cars, industrial machinery and turbines.
Sales in the second quarter totaled 17.96 billion kronor -- in
line with analysts' forecasts -- but up from 16.39 billion kronor
in the year earlier. Operating profit rose to 2.1 billion kronor,
from 1.84 billion kronor.
The results include one-time charges of 220 million kronor
stemming from a previously announced cost cutting program and
changes in currency rates and regulations in Venezuela.
-Write to Anna Molin at anna.molin@wsj.com; Twitter:
@AnnaWSJ
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