Transcript The SKF Group

The SKF Group
First-quarter result 2003
Sune Carlsson, President and CEO
SKF Group
Result for the first quarter
MSEK
2003
2002
10 541
10 665
-1.2%
944
903
+4.5%
9.0%
8.5%
Profit before taxes
802
761
Net profit
562
529
Earnings per share, SEK
4.94
4.64
47
-112
Net sales
Operating profit
Operating margin
Cash flow*
*after investments before financing
+5.4%
+6.5%
SKF Group
Profit before taxes
excl. non-recurring items
MSEK
1 000
900
800
700
600
500
400
300
200
100
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999
2000
2001
2002
2003
SKF Group
Earnings per share
SEK
7
6
5
4
3
2
1
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999
2000
2001
2002
2003
SKF Group
Net sales
MSEK
12 000
10 000
8 000
6 000
4 000
2 000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999
2000
2001
2002
2003
SKF Group
Sales in local currency
% change y-o-y
10
8
6
4
2
0
-2
-4
-6
Q1
2000
Q2
Q3
Q4
Q1
2001
Q2
Q3
Q4
Q1
2002
Q2
Q3
Q4
Q1
2003
SKF Group
Net sales development per quarter
2001
2003
2002
Percent
y-o-y
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Structure
0.3
0.4
0.4
1.0
1.4
1.9
2.0
1.4
0.7
Volume
1.1
- 2.7
- 3.2
- 3.8
- 7.3
-0.5
3.3
3.9
6.2
Price / Mix
1.9
1.9
1.6
2.1
1.5
1.4
1.2
1.7
1.2
Sales in local
currency
3.3
- 0.4
- 1.2
- 0.7
- 4.4
2.8
6.5
7.0
8.1
Currency
7.7
11.1
8.9
6.7
2.2
-3.7
-8.3
-10.8
-9.3
Net sales
11.0
10.7
7.7
6.0
- 2.2
-0.9
-1.8
-3.8
-1.2
SKF Group
Operating margin
excl. non-recurring items
%
11
10
9
8
7
6
5
4
3
2
1
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999
2000
2001
2002
2003
SKF Group
Operating margin per division
%
14
12
10
Industrial
Service
8
6
Electrical
Automotive
Aero and
Steel
4
2
0
Q1
Q2
2000
Q3
Q4
Q1
Q2
2001
Q3
Q4
Q1
Q2
2002
Q3
Q4
Q1
2003
SKF Group
Accumulated change in the number of employees
Employees
5 000
4 000
3 000
2 000
1 000
acquisitions
0
-1 000
-2 000
-3 000
-4 000
-5 000
capacity adjustment
and restructuring
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2000
2001
2002
2003
SKF Group
Cash flow after investments before financing
MSEK
1 600
1 400
1 200
1 000
800
600
400
200
0
-200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
1999
2000
2001
2002
2003
SKF Group
%
Inventories as % of annual sales
27
26
25
24
23
22
21
20
Target: 20 %
19
18
1999
2000
2001
2002
2003
SKF Group
Additions to tangible assets
Depreciation according to plan
MSEK
2 000
1 500
1 000
500
0
1999
2000
2001
2002
March
2003
SKF Group
Net cash*
Mkr
4000
3000
2000
1000
0
-1000
-2000
-3000
-4000
-5000
-6000
-7000
1999
2000
2001
2002
*Short-term financial assets - Loans
2003
SKF Group
Volume trend, bearings
External
sales 2002
Europe
55 %
North America
26 %
Asia Pacific
13 %
Latin America
4%
Jan 2003
April 2003
SKF Group
Volume trend, bearings
External
sales 2002
Industrial
23
Automotive
32
Electrical
Service
Aero (excl.forging and steel)
4
32
5
Jan 2003
April 2003
SKF Group
Outlook April 2003
The overall market demand for the Group's
products and services is expected to remain
relatively unchanged in the second quarter.
Manufacturing levels which were higher than
sales in the first quarter will be adjusted
downwards during the second quarter.
SKF Group
Target
10 % operating margin level
10 BSEK additional annual
net sales
SKF Group
Focused areas
Drive operational excellence
Grow new markets and segments
Introduce new products and solutions
Develop our people and competencies
SKF Group
Cautionary Statement
This report contains forward-looking statements that are based on
the current expectations of the management of SKF.
Although management believes that the expectations reflected in
such forward-looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct.
Accordingly, results could differ materially form those implied in the
forward-looking statements as a result of, among other factors,
changes in economic, market and competitive conditions, changes
in the regulatory environment and other government actions,
fluctuations in exchange rates and other factors mentioned in SKF's
latest 20-F report on file with the SEC (United States Securities and
Exchange Commission) under "Forward-Looking Statements" and
"Risk Factors".