Organic sales and operating profit growth is strong, cost and exchange rate effects are well controlled
April 07, 2023
As the board of directors announced in January, Rickard Gustafson (Rickard Gustafson) will join as president and chief executive officer no later than July 1. Mr. Deng Lixin (Alrik Danielson) will leave his post on April 30. In addition, the board of directors appointed the current chief financial officer, Niclas Rosenlew, as the interim chief executive officer. Gothenburg, April 22, 2021: Deng Lixin, President and CEO: "In the first quarter, our sales and market demand grew strongly. However, in terms of cost inflation and exchange rates, our operating results were significantly adversely affected, reaching 1.3 billion Swedish kronor. Nonetheless, our adjusted operating results It is still very stable, reaching 2.789 billion Swedish kronor (2.572 billion Swedish kronor last year), and the adjusted operating margin was 14% (last year 12.8%). Organic sales in the quarter increased by 8.6%, and net sales were 19.865 billion Swedish krona (20.085 billion Swedish krona last year). Among them, sales in Latin America and Asia increased significantly, while sales in Europe and North America were relatively flat. In the industrial and automotive business areas, we have taken corresponding measures to make up for rising input costs. The industrial business performed strongly, with an adjusted operating profit margin as high as 16.3% (15.5% last year). The automobile business continued to perform well, with an adjusted operating profit margin of 8.9% (6.0% last year). From a cash flow perspective, the first quarter was at a historical low. The rapid increase in market demand has also led to an increase in working capital. Therefore, the cash flow is -702 million Swedish kronor (1,930 million Swedish kronor last year). Starting this quarter, we will include sustainability-related goals in the quarterly report. One of SKF's strengths is our ability to support the transition to low-carbon economic and social development. Our investments in industries such as renewable energy, electric vehicles and railways are paying off. In the past two years, our sales in these industries have grown from SEK 4 billion to SEK 7 billion. In addition, we have also made great progress in achieving carbon reduction in our own business. Throughout the group, we continue to implement new ways of working and digitalization. Due to the rapid increase in market demand, we added about 200 temporary employees, mainly in factories. The number of regular employees remains unchanged. After the market demand fell to the bottom in the second quarter of 2020, it is now gradually picking up. Net sales are expected to continue to grow, reaching the level before the new crown pneumonia epidemic in the second quarter of 2021, which is the same as the second quarter of 2019. After almost 7 years as the CEO of SKF, this will be my last quarterly report. Here, I would like to thank all colleagues, customers and stakeholders for their strong support over the years. Without you, we would not have achieved what we are today. " Outlook and guidance Demand in the second quarter of 2021 compared to the second quarter of 2020 After the market demand fell to the bottom in the second quarter of 2020, it is now gradually picking up. Net sales are expected to continue to grow, reaching the level before the new crown pneumonia epidemic in the second quarter of 2021, which is the same as the second quarter of 2019. Guidelines for the second quarter of 2021 Based on the exchange rate on March 31, 2021, compared with the second quarter of 2020, the impact of the exchange rate on operating profit is expected to be approximately SEK -400 million. 2021 guidelines Tax burden level, excluding the impact related to the divestiture: about 28%. Added value of property, plant and equipment: about 3.6 billion Swedish kronor. The board of directors appoints Niclas Rosenlew as interim CEO As the board of directors announced in January, Mr. Rickard Gustafson will join SKF as President and Chief Executive Officer by July 1st at the latest. Mr. Deng Lixin (Alrik Danielson) will leave his post on April 30. In addition, the board of directors appointed the current chief financial officer, Niclas Rosenlew, as the interim chief executive officer.
UKL Bearing Manufacturing Co., Ltd.,
