SKF sees slightly weaker volume development in the second quarter and will reduce costs in Europe
Resource from: CBCC Likes:3014
Jun 13,2012
Based on a weaker development in Western Europe and Asia, the SKF Group expects demand for its products and services in the second quarter to be slightly lower than in the corresponding quarter last year and at a similar level to the first quarter of this year. The manufacturing level is being adjusted accordingly to reflect this demand situation.
"We are seeing a weaker development in our sales in Western Europe and Asia than we expected entering the quarter. In Europe, it is quite broad-based and even if some industries, such as aerospace and renewable energy, develop well for us, I think that the demand reflects what is happening in the financial markets and a general lack of confidence," says Tom Johnstone, SKF President and CEO. "In Asia, we saw some improvement in our sales as we went through the first quarter and into the second quarter. However, the demand in Asia, primarily China, needed to continue to improve and this has not happened yet. In India we have seen some weakening in our business, which is also broad-based reflecting the weak sentiment. Overall, I see a more uncertain demand situation at present globally, but based on what has been happening in the second quarter, this is not a surprise."
In addition, SKF has taken steps to reduce its cost base in Germany through the introduction of voluntary early retirement and redundancy schemes. Both of these schemes are underway and are expected to result in a reduction of around 400 people with annual savings of around SEK 170 million when fully implemented in 2016. In 2013, the estimated savings will be around SEK 120 million. The total cost for these schemes is estimated at around SEK 170 million, which is expected to be taken as a one off cost in the second quarter impacting the business area Industrial Market, Strategic Industries.
Gothenburg, 13 June 2012
Aktiebolaget SKF
(publ)
AB SKF is required to disclose the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 09.00 on 13 June 2012.
For further information, please contact:
PRESS: Rebecca Janzon, Director, Press Relations
tel: +46 31-337 2400, mobile: +46 727-173880, e-mail: rebecca.janzon@skf.com
INVESTOR RELATIONS: Marita Björk, Head of Investor Relations
tel: +46 31-337 1994, mobile: +46 705-181994, e-mail: marita.bjork@skf.com
SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Annual sales in 2011 were SEK 66,216 million and the number of employees was 46,039. www.skf.com
(CBCC)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous Intercontinental Bearing Supply Company Achieves AS9100 Certification
Next NTN Driveshaft to Expand Columbus Operations
Next NTN Driveshaft to Expand Columbus Operations
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
