SKF's 2021 Sales Improved 9% as Supply Chain Issues Weighed on 2nd Half
Sweden-based bearings manufacturing giant SKF reported its 2021 fourth quarter and full-year financial results on Feb. 3, showing a solid rebound year from 2020, though growth was tempered by industry-wide supply chain issues in the second half of the year.
The company posted total Q4 sales of $2.31 billion, up 7.2 percent year-over-year, with organic sales up 4 percent. SKF's Diversified Industrial segment — accounting for 72.1 percent of total business — was the primary driver, as its total sales of $1.67 billion grew 12.2 percent, with organic sales of 9.1 percent. SKF's Automotive segment, meanwhile, saw Q4 sales of $640 million decline 3.8 percent overall, with organic sales down 7.9 percent.
"The strong sales development was driven by significantly higher demand in EMEA and Latin America, while demand in North America and Asia grew at a somewhat lower pace," the company said in its earnings report. "Demand was generally strong across most industries, especially within industrial drives, industrial distribution, off-highway and heavy industries."
Q4 Industrial operating profit of $254 million jumped 39.0 percent year-over-year, with margin of 15.3 percent improving 300 basis points. Automotive operating profit of $31 million fell 48.3 percent, with margin of 4.8 percent down 420 basis points. Total Q4 operating profit of $285 million improved 17.4 percent year-over-year, while total net profit of $195 million increased 10.4 percent.
For the full year, SKF's 2021 total sales of $9.00 billion increased 9.2 percent over 2020, with organic sales up 12.6 percent. Total 2021 operating profit of $1.18 billion jumped 52.2 percent, while net profit of $834 million surged 69.4 percent.
Looking ahead, SKF is expecting Q1 2022 organic sales growth in the low single-digits year-over-year, with Industrial expected to grow while Automotive is expected to decline. For the full-year, SKF expects organic sales growth of about 5 to 10 percent vs. 2021.
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