"I'm pleased to report that our strategic transformation continues at a high pace, clearly reflected by a strong set of numbers in the second quarter. In the quarter, we saw record high net sales, adjusted operating profit, and cash flow.
Strong results in the second quarter
Net sales were
We saw strong demand in
We delivered a record strong result with an adjusted operating profit of
For our Industrial business, the adjusted operating profit came in significantly stronger than last year at
Cash flow from operations was
Progressing our strategic transformation
Naturally, rapid execution of our strategy is crucial, and we are making good progress across key operational levers, such as innovation, efficiency, and portfolio management.
Ceramic bearings is one of several interesting technology and innovation areas where we see a strong demand from customers in many industries, such as aircraft engines, electrical vehicles, cleantech, hydrogen and green energy. To strengthen our offering and to meet a rapidly growing demand, we are further investing in our supply chain. One example being the recently announced joint venture with Sinoma Nitride that we signed to secure long-term access to high quality ceramic rolling elements.
We are relentlessly working on improving the productivity and efficiency in our operations and way of working. As part of our strive towards lean, clean, and digital manufacturing, we intend to consolidate our spherical roller bearing manufacturing in
We are also continuing our portfolio management efforts to further strengthen our business and market position. An example from our Industrial business is the recently announced divestment of our coolant pumps operations Spandau Pumpen. In our Automotive business, we have now completed the previously communicated decision to exit
In addition, we have also made some significant progress in our sustainability journey. One example is the Virtual Power Purchase Agreement (VPPA) that we signed to secure and accelerate access to renewable energy in our operations. In the agreement we will purchase guarantees of origin for a period of 15 years from an upcoming solar plant in
The rapid progress in our strategic transformation and our strong results in the second quarter would not have been possible without the efforts from our employees and partners throughout the organization. I would like to take this opportunity to thank them all for their hard work and contribution during the first half of 2023. Together, we re imagine rotation for a better tomorrow!
Outlook
Going into the second half of the year, we expect the normal third quarter seasonality pattern in our results. We also expect continued volatility and geopolitical uncertainty impacting the markets in which we operate. Looking into the third quarter of 2023, we expect mid single-digit organic sales growth. For the full year, we maintain our outlook of high single-digit organic sales growth, compared to 2022."
Key figures, MSEK unless otherwise stated | Q2 2023 | Q2 2022 | Half year 2023 | Half year 2022 |
Net sales | 27,123 | 23,655 | 53,672 | 46,597 |
Adjusted operating profit | 3,614 | 2,473 | 7,093 | 5,531 |
Adjusted operating margin, % | 13.3 | 10.5 | 13.2 | 11.9 |
Operating profit | 3,213 | 1,581 | 6,592 | 4,534 |
Operating margin, % | 11.8 | 6.7 | 12.3 | 9.7 |
Adjusted profit before taxes | 3,231 | 1,990 | 6,272 | 4,979 |
Profit before taxes | 2,830 | 1,097 | 5,772 | 3,982 |
Net cash flow from operating activities | 3,664 | 1,293 | 6,411 | 1,022 |
Basic earnings per share | 4.48 | 1.08 | 9.03 | 5.44 |
Adjusted earnings per share | 5.36 | 2.90 | 10.13 | 7.63 |
Net sales, change y-o-y, %, Q2 | Organic1) | Structure | Currency | Total |
7.9 | -0.1 | 6.9 | 14.7 | |
Industrial | 5.7 | 0.0 | 6.4 | 12.1 |
Automotive | 13.8 | -0.2 | 7.8 | 21.4 |
1) Price, mix and volume
Net sales, change y-o-y, %, Half year | Organic1) | Structure | Currency | Total |
9.0 | -1.0 | 7.2 | 15.2 | |
Industrial | 7.5 | -1.0 | 6.9 | 13.4 |
Automotive | 12.9 | -1.1 | 8.0 | 19.8 |
1) Price, mix and volume
Organic sales in local currencies, change y-o-y, %, Q2 | The | |||
10.5 | 2.9 | 9.5 | 10.0 | |
Industrial | +++ | + | ++ | +++ |
Automotive | +++ | ++ | +++ | +++ |
Organic sales in local currencies, change y-o-y, %, Half year | The | |||
11.5 | 4.6 | 9.0 | 12.2 | |
Industrial | +++ | + | +++ | +++ |
Automotive | +++ | +++ | +++ | +++ |
Outlook and Guidance
Demand for Q3 2023 compared to Q3 2022
Looking into the third quarter of 2023, we expect mid single-digit organic sales growth.
Guidance for Q3 2023
Currency impact on the operating profit is expected to be around
Guidance 2023
- For the full year, we expect high single-digit organic sales growth, compared to 2022.
- Tax level excluding effects related to divested businesses: around 27%.
-
Additions to property, plant and equipment: around
SEK 5.5 billion .
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The half year report presented in this press release contains financial and inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through the agency of the contact person set out below on
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