1 / 24

The SKF Group Nine-month result, 2005 Tom Johnstone, President and CEO

The SKF Group Nine-month result, 2005 Tom Johnstone, President and CEO. Third quarter 2005. Nine-month result 2005. * MSEK 2 366 before the acquisitions and the purchase of minority shareholding in previously acquired companies. Areas in focus 2005 Performance Q3 2005. 2.1% Ongoing

rosebruce
Download Presentation

The SKF Group Nine-month result, 2005 Tom Johnstone, President and CEO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The SKF GroupNine-monthresult, 2005Tom Johnstone, President and CEO

  2. Third quarter 2005

  3. Nine-month result 2005 * MSEK 2 366 before the acquisitions and the purchase of minority shareholding in previously acquired companies.

  4. Areas in focus 2005 Performance Q3 2005 2.1% Ongoing 7.2% -2.9% • Ongoing • MSEK 1 495 • Operating margin level Maintain a positive price/mix Recovery of raw material cost increase • Continued sales growth Maintain organic growth pace Structure (mainly Ovako) • Strengthen the platform/segment offer • Cash flow before financingand acquisitions

  5. Major events during the quarter • Doubling of manufacturing capacity in Indonesia • Locomotive axle boxes order from Alstom • X-Tracker hub units for 2006 Cadillac STS-V • Sustainability - For the sixth year: DJSI World and DJSI STOXX - For the fifth year: FTSE4Good

  6. Operating margin* % 2004 2005 2002 2003 * excluding restructuring and impairment in Q4 2003

  7. Operating margin per division* % Service Industrial Electrical Aero and Steel excl. Ovako Automotive 2004 2005 2003 * excl. restructuring and impairment in Q4, 2003 and in Q2, 2005

  8. Sales in local currencies (excl. structural changes) % change y-o-y 2004 2005 2002 2003

  9. Sales in local currency (incl. structural changes) % change y-o-y 2004 2005 2002 2003

  10. Group sales volume vs Industrial production

  11. Growth development / local currency6% annual growth rate (whereof 4% organic) % Y-o-Y 11.8 (Organic 9.9,Net acq/div -0,2) 9.7 5.2 3.0 Up to September Acquisitions / Divestments Organic growth

  12. Net sales development per quarter 2003 2004 2005 Percent y-o-y

  13. Inventories as % of annual sales % 2004 2005 2003 2002

  14. Cash flow, after investments before financing MSEK 2004 2005 2002 2003

  15. Net cash (Short-term financial assets - loans) MSEK Dividend paid: 2001 Q2, MSEK 598 2002 Q2, MSEK 683 2003 Q2, MSEK 911 2004 Q2, MSEK 1 138 2005 Q2, MSEK 1 366 2004 Q2, Pension: MSEK 3 100 2005 Q2, Redemption, MSEK 2 846 2004 2005 2001 2002 2003

  16. Net interest bearing liabilities (Short-term financial assets - loans - net postemployment benefits) MSEK 2004 2005 2003

  17. Accumulated change in the number of employees Employees acquisitions capacity adjustment and restructuring 2001 2003 2002 2004 2000 2005

  18. Fixed assets / Sales % % Up to September

  19. SKF Group targets • 10% Operating margin level • 6% Growth per annum • 20% ROCE • 18% Inventory / sales 2006 2007

  20. October 2005: Outlook for the fourth quarter The market demand for SKF's products and services in the fourth quarter, compared to the previous quarter, is expected to remain on a high level in Europe, to be slightly higher in North America, significantly higher in Asia and to remain on a high level in Latin America. This is in addition to normal seasonality. The manufacturing level will be unchanged during the fourth quarter, compared to the third quarter, while higher in absolute terms due to normal seasonality.

  21. Volume trend for the fourth quarter 2005 Net sales 2004 October 2005 July 2005 Europe 57% 20% North America Asia Pacific 15% Latin America 5% Total Note: This is the sequentialdevelopment

  22. 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 from 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".

More Related