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UPDATED: SKF Issues Financial Report for First Half of 2011

This article has been updated to correct a mistake in the conversion rates between SEK and USD currency. We apologize for the error.

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Editor’s Note: This article has been updated to correct a mistake in the conversion rates between SEK and USD currency. We apologize for the error.

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GOTEBORG, Sweden — SKF has reported its financial results for the first half of 2011. Year-to-date, net sales for the company reached approximately $5.03 billion, an increase of 14.2 percent from the prior year period.

In Europe they increased by 14 percent; in North America by 15.8 percent; in Asia by 16.9 percent; and in the Middle East and Africa by 12.2 percent. In Latin America, sales increased by only 2.9 percent, affected by the introduction of a new warehousing operation.

The company reported net profits for the first half of 2011 to be approximately $510.32 million.

Tom Johnstone, SKF president and CEO, commented, “Demand developed very much in line with our expectations during the quarter and this, combined with the actions we are taking, enabled us to deliver a record operating profit and operating margin as well as a good cash flow. Our sales in local currencies developed positively in all regions and divisions. As planned, we have increased the investments in our business to support our long-term initiatives and financial targets.

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"Despite the increased uncertainty in the market we expect a good demand development for the Group in the third quarter, excluding the normal seasonality impact. We will continue to invest in our business and take the necessary steps to offset the high raw material costs and currency headwinds.”

For the second half, SKF said the demand for its products and services is expected to be slightly higher for the Group as well as for North America. It is expected to be relatively unchanged for Europe, higher in Asia and significantly higher in Latin America. For the Industrial Division and the Service Division it is expected to be slightly higher and for the Automotive Division relatively unchanged.

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