Bearings maker SKF Q2 profit tops forecast, sees higher demand
The company has been hit by weak global industrial demand, heavy price pressure and intense competition in recent years, but growth returned at the end of 2016, and has since accelerated.
"As we move into the second half of the year, we expect to see continued broad-based industrial activity and growth," SKF Chief Executive Alrik Danielson said in a statement.
Gothenburg-based SKF's second-quarter operating profit, adjusted for one-time items, rose to 2.44 billion Swedish crowns ($297 million) from 2.02 billion in the same period last year, beating a mean forecast for 2.36 billion crowns in a Reuters poll of analysts.
SKF, which counts Germany's Schaeffler AG and Timken of the United States among its rivals , said it expected higher demand, by which it typically means sales volume growth of 4-8 percent, in the current quarter compared with the same quarter in 2016.
It forecast higher demand in Europe, North America and Asia, and significantly higher in Latin America. Like-for-like sales grew 7.5 in the quarter, ahead of a 7.1 percent mean forecast.
A profit warning from Schaeffler in late June citing rising pricing pressure in the automotive business as well as a temporary supply chain shortage in the automotive aftermarket business, has weighed on SKF shares.
SKF shares are down 4 percent in the past month, compared with a 17 percent drop for Schaeffler and a 2 percent decline in the STOXX Europe 600 Industrial Goods & Services Index.
But while Schaeffler generates the vast majority of its sales in its automotive business, SKF's automotive division accounts for only around 30 percent of its group sales.
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.
Next Global Automotive Ball bearing Market 2021: Trends and Growth, Segmentation and Key Companies
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.
