Bearing provider SKF mentioned it achieved “a really sturdy underlying [Q4 2020] working revenue” of SEK2,582m (versus SEK2,181m the earlier yr), representing an adjusted working margin of 13.2% (10.3%) regardless of flat demand and a unfavorable foreign money affect of SEK645m.
Natural gross sales for the quarter slipped 0.1percentto SEK19.6bn (SEK21.2bn).
“Gross sales have been considerably greater in Latin America, greater in Asia, and decrease in each North America and Europe,” SKF mentioned in a press release.
Adjusted working margin was 14.5% (13.3%) regardless of an natural gross sales drop of 4.4%.
The automotive enterprise achieved adjusted working margin of 10.1% (2.3%), pushed, SKF mentioned, “by continued skill to regulate prices in addition to an natural gross sales improve of 11.1%”.
“Since coming again to SKF in 2015, I’ve highlighted our skill to generate sturdy money movement as one in every of our key strengths and the fourth quarter was no exception,” mentioned Alrik Danielson, SKF president and CEO.
“Money movement throughout the quarter was SEK1,901m (SEK701m), pushed primarily by a powerful working earnings and discount of working capital. We proceed to spend money on the enterprise, with a complete of SEK3.3bn invested in our factories (up from SEK1.9bn in 2016) and pay down our debt, positioning the enterprise properly for the long run.
“Capitalising on new methods of working, guaranteeing we create and preserve simplified organisational constructions and all the time maintain the shopper’s wants at coronary heart has enabled us to repeatedly scale back our headcount throughout the yr, with an extra headcount discount within the quarter of 200.
“Investments in and consolidation of our factories continued throughout the quarter, together with the announcement of a consolidation of our slewing bearing manufacturing and supporting capabilities in France.”
“Our stable efficiency throughout the yr is mirrored within the board’s proposal of a SEK6.50 dividend (SEK3.00).”
Outlook and steering
SKF mentioned the industries and areas wherein it operates are nonetheless impacted by the consequences associated to the unfold of COVID-19.
“We anticipate to see mid-single digit natural gross sales progress within the first quarter of 2021 in comparison with the primary quarter of 2020.”
Foreign money affect on Q1 20121 working revenue is anticipated to be round SEK600m much less in contrast with Q1 2020.
