Upload
adam-jenkins
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
16 April 2008
1
The SKF Group
First-quarter results 2008
Tom Johnstone, President and CEO
16 April 2008
3Highlights during the first quarter 2008
• Acquisition of QPM Aerospace’s metallic rod business.
• Opened the first machine tool competence centre in Stuttgart, Germany.
• New contract with: - Siemens Transportation Systems to deliver axleboxes and tapered roller bearing units for new long distance Railjet trains.
- British Petroleum to provide proactive reliability maintenance services in the North Sea over a five year period.
- Goldwin Science and Technologies Co. Ltd. in China to supply the main shaft seals for their new 1.5 MW wind turbine.
16 April 2008
4
SEKm 2008 2007
Net sales 15,596 14,371
Operating profit 2,040 1,886
Operating margin 13.1% 13.1%
Profit before taxes 1,924 1,825
Net profit 1,296 1,214
Basic earnings per share, SEK 2.77 2.57
Cash flow after operating investments before financial items -131 -653
Cash flow after operating investments before financial items, excluding acquisitions
-77 -439
First quarter 2008
16 April 2008
5Operating margin
%
0123456789
1011121314
2006 2007
Long-term target level: 12%
2008
16 April 2008
6Operating margin
0
2
4
6
8
10
12
14
2006 2007 2008 Q1
%
* excluding income from the jointly controlled company Oy Ovako Ab
12.6 12.9
11.3*
13.1
Long-term target level: 12%
16 April 2008
7
0
2
4
6
8
10
12
14
16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Operating margin per division
IndustrialService
Automotive
%
2006 2007 2008
Excluding one-time items (eg. restructuring, impairments, capital gains)
16 April 2008
8Sales in local currencies (excl. structural changes)
0
2
4
6
8
10
12
14
16% change y-o-y
2006 2007 2008
16 April 2008
9
02468101214
2006 2007 2008 Q1
Growth development in local currency
% Y-o-Y
Acquisitions/DivestmentsOrganic growth
7.5*
13.2
* Excluding effect from Ovako:2006 10.1%
Long-term target level: 6-8% per annum
9.7
16 April 2008
10Net sales development per quarter
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
6.0 2.5 3.3 8.8 7.9 6.9 9.0 6.3 4.9
-4.9 -0.5 1.1 4.6 4.0 4.6 3.7 1.0 1.0
2.9 2.0 2.0 2.3 1.8 2.7 2.0 3.2 3.8
4.0 4.0 6.4 15.7 13.7 14.2 14.7 10.5 9.7
8.0 1.0 -2.1 -5.8 -5.6 -2.3 -1.9 -2.0 -1.2
12.0 5.0 4.3 9.9 8.1 11.9 12.8 8.5 8.5
Percent y-o-y
Volume
Structure
Price / Mix
Sales in local currency Currency
Net sales
2006 2007 2008
16 April 2008
11Cash flow, after operating investments before financial items
-700
-500-300
-100
100
300500
700
9001 100
1 300
1 500
1 700
2006 2007
SEKm
Cash out fromacquisitions (SEKm): 2006 2,1292007 1,2092008 Q1 54
Cash in from Ovako (SEKm):2006 Q4 1,2172007 Q2 46
2008
16 April 2008
12Net debt (Short-term financial assets minus loans and post-employment benefits)
-12 000
-10 000
-8 000
-6 000
-4 000
-2 000
0
SEKm
AB SKF, dividend paid (SEKm):2006 Q2 1,8212007 Q2 2,049
2007 Q2,redemption 4,554
2006 2007 2008
16 April 2008
13
18
19
20
21
22
23
Inventories as % of annual sales
%
2006 2007
Long-term target level: 18%
2008
16 April 2008
14Return on capital employed
23
24
25
26
27
2006 2007 2008 Q1
ROCE: Operating profit plus interest income, as a percentage of twelve months average of total assets less the average of non interest bearing liabilities.
%Long-term target level: 24%
16 April 2008
15April 2008: Outlook for the second quarter 2008(compared to the first quarter 2008)
The market demand for SKF’s products and services in the second quarter of 2008 is expected to be higher for the Group. The demand is expected to be higher in Europe, relatively unchanged in North America and significantly higher in both Asia and Latin America. The demand is expected to be higher in the Industrial Division and the Service Division and slightly higher for the Automotive Division.
The manufacturing level for the second quarter 2008 will be slightly higher compared to the first quarter 2008, and higher than the second quarter 2007.
16 April 2008
16Volume development
Daily volume trend for: Q1 2008 Q2 2008
Net sales2007
Europe 56%
North America
18%
Asia Pacific 18%
Latin America
5%
Total
Outlook Q22008 vs
2007
++
=
+++
+++
++
16 April 2008
18Key focus areas ahead
• Strengthen the platform/segment approach
• Maintain a positive price/mix
• Focus on fast growing segments and geographies
• Drive operational efficiency and Six Sigma
• Manage material costs and supply
• Attract and retain the best people
Use sustainability as a guiding light
16 April 2008
19
Employee CareEmployee Care
Community CareCommunity Care
Business CareBusiness Care
SKF Corporate Sustainability
Environment CareEnvironment Care
BeyondZeroTM SKF CareSKF Care
Operating margin
0
2
4
6
8
10
12
14
2003 2004 2005 2006 2007 YTDQ3
16 April 2008
20
To equip the worldwith SKF
knowledge
SKF Group Vision
16 April 2008
21