STOCKHOLM--The world's biggest ball-bearing maker, Swedish SKF
(SKF-B.SK), said Friday demand for its products and services is
expected to be unchanged in the second quarter as it reported lower
net profit for the first quarter.
The company said net profit for the three months ended March 31
was 1.17 billion Swedish kronor ($136 million), compared with
SEK1.28 billion in the same period last year, as currency tailwinds
of SEK450 million only partly offset restructuring charges.
Ball bearings are used to reduce friction in rotating parts in
cars, industrial machinery, and turbines. SKF, a global supplier to
almost all industries, including the automotive and energy sectors,
said demand for its products is expected to be "unchanged" in the
second quarter, compared with the previous three months and a year
earlier.
Demand for SKF's products and services is seen as unchanged in
Europe, higher in Asia and slightly lower in North and Latin
America.
SKF is in the midst of a cost-cutting program that targets
SEK1.2 billion in full-year savings and is expected to cost a total
of 1.4 billion. The company booked SEK535 million of those costs in
the first quarter.
Sales in the first quarter totaled SEK19.45 billion, up from
SEK16.73 billion in the year-earlier period. Operating profit
excluding restructuring costs rose to SEK2.38 billion from SEK1.91
billion.
Shares closed at SEK225.60 Thursday.
Write to Christina Zander at christina.zander@wsj.com
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