SKF 2020 Nine Month Report: Strategy Implementation Continues to Promote Strong Results
"SKF continues to transform to a customer-centric, innovative and lean business. Our strong performance in the third quarter shows that we are implementing strategies, including new ways of working, developing better and more attractive customer offers, And to make our manufacturing more responsive to customer needs.
Despite a natural decrease of 5.1% compared to the same period last year, we have increased our adjusted operating profit margin to a very strong 13.3% (11.3%).
Net sales were 18.6 billion Swedish kronor, a decrease from the same period last year, but due to a significant decline in the second quarter, demand showed a continuous rebound trend. Cash flow for the quarter was SEK 2.266 billion, mainly due to the decrease in working capital. SKF 22210 E bearings online , pls click here :
Sales in Europe have naturally fallen by 12.5%. Sales in North America fell by 11.9%, Latin America grew by 4.6%, and Asia grew by 7.2%.
The adjusted operating margin of the industrial business was 15.8% (13.9%), and organic sales fell by 6.9%. The adjusted operating profit margin of the automotive business was 7.4% (4.6%), and organic sales fell by 0.7%.
We are accelerating our efforts to achieve regionalization, integration and modernization of our manufacturing footprint. In this quarter, we announced a total investment of 550 million Swedish kronor in North America, bringing world-class technology and automation technology to our slewing ring plant in Sumter, and tapered roller bearings from China in Mexico The production base was positioned. These investments will strengthen our offer and position in North America. The resulting flexibility and improved service levels allowed us to merge the plants in Avon, Ohio and North Charleston, South Carolina into the Sumter plant.
We also continued to adjust our working methods and business structure, resulting in restructuring expenses of SEK 462 million this quarter. No matter how difficult it is to make these decisions, this flexibility also allows us to quickly adjust our business while also investing in the capabilities we need in the future.
The uncertainty of the recent economic environment makes it difficult to provide a reliable outlook for fourth quarter demand. Due to economic uncertainty, the board of directors decided not to convene an extraordinary general meeting of shareholders to propose an increase in dividends for 2019.
After the transformation, SKF in 2020 can respond well to various demand scenarios. We will continue to invest to make our services stronger, business leaner, and the pace of innovation higher.
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