GOTHENBURG, Sweden,
Feb. 2, 2023 /PRNewswire/
--
Q4 2022
Net sales: SEK 25,361
million (20,986) Organic growth: 9.7% (3.8%)
Adjusted operating profit/margin: SEK
2,542 million, 10.0% (2,260, 10.8%)
Full year 2022
Net sales: SEK 96,933
million (81,732) Organic growth: 8.1% (12.6%)
Adjusted operating profit/margin: SEK
10,204 million, 10.5% (10,839, 13.3%)
Rickard Gustafson,
President and CEO:
"Review of 2022
2022 was a year in which we accelerated our strategic
development in earnest. We've capitalized on opportunities in our
target growth areas delivering double-digit growth in several
strategically important segments. At the same time, we are taking a
more active approach to portfolio management, working across
customer industries and product lines to improve our operational
performance. As announced in December, we have also commenced a
strategic review of our Aerospace business.
We have accelerated investments in our regional engineering and
manufacturing capabilities across Asia and the Americas, with total investments
for the year of SEK 5 billion. This
is an important step in creating a more competitive and sustainable
foundation from which to support our customers, as well as
increasing our attractiveness as an employer.
Throughout the year, we have been operating against a back-drop
of challenging external circumstances, including the war in
Ukraine and exceptional cost
inflation levels, which accelerated throughout the year, peaking
during Q3. We have worked hard to compensate for this continually
moving target, with the gap closing towards the end of the
year.
I'm very grateful for the commitment, customer focus and care
for one another that SKF colleagues have demonstrated throughout a
very volatile and difficult 2022. I'm convinced that our newly
embedded operating model and organizational structure will bring us
even closer to our customers and further enhance our speed to
market.
Review of the fourth quarter
The fourth quarter saw strong demand across the board, with
double-digit sales growth in EMEA and India & Southeast Asia. Net sales were SEK 25,361 million, representing an organic sales
growth of approximately 10%, bringing our total organic growth for
the year to over 8% - at the top-end of our previous guidance. Our
business in China saw a general
negative impact from the fast spread of Covid-19 during the month
of December.
The adjusted operating profit of SEK
2,542 million improved sequentially and compared to last
year, bringing our adjusted operating margin to 10%. We continued
to implement broad-based price increases, compensating for the
SEK 1.8 billion of cost inflation
during the quarter. The positive currency impact on our results was
lower than guided (about SEK 150
million, compared to the previously guided SEK 400 million), driven by fluctuations in the
US Dollar and Euro rates versus the Swedish Krona.
Our focus on improving cash efficiency is also showing results,
with a very strong net cash flow from operations of over
SEK 3.3 billion (1.2 billion last
year), driven mainly by improved working capital management.
The Industrial business saw solid demand in most segments and
regions, with especially high demand in EMEA and India & Southeast Asia. Organic growth was 9% and the
adjusted operating margin was 12%. Our historically
European-centric manufacturing footprint within Industrial makes us
exposed to cost inflation levels in the region, but our positive
trend of price/mix compensation continues. Our railway, marine and
aerospace business grew by some 20% respectively.
Our future technology initiatives are showing strong momentum.
The magnetic bearings business had a strong finish to the year,
reaching a record order intake of SEK 1
billion in 2022, driven by new energy applications. Within
RecondOil, our partnerships with Quaker Houghton and Castrol are
developing well, with the first regenerated oils being reused at
several recurring customer locations.
The Automotive business saw double-digit growth in all regions
except China & Northeast Asia, delivering an organic growth
of 12% and a solid adjusted operating margin of over 5%. We
continue to shift our portfolio to focus on customer segments where
we can capitalize on the value of our offers: electric vehicles,
commercial vehicles and aftermarket. Demand for our
high-performance bearings used in EV applications continues to be
strong, growing by 46% in the quarter.
Outlook
We expect to see continued volatility and geopolitical
uncertainty impacting the markets in which we operate.
Nevertheless, looking into the first quarter of 2023, we expect mid
single-digit organic sales growth. For the full year, we expect mid
single-digit organic sales growth, compared to 2022.
In recognition of the Group's solid financial position, the
Board has decided to propose to the Annual General Meeting a
dividend of SEK 7.00 per share."
Key figures, SEKm
unless otherwise stated
|
Q4
2022
|
Q4
2021
|
2022
|
2021
|
Net sales
|
25,361
|
20,986
|
96,933
|
81,732
|
Adjusted operating
profit
|
2,542
|
2,260
|
10,204
|
10,839
|
Adjusted operating
margin, %
|
10.0
|
10.8
|
10.5
|
13.3
|
Operating
profit
|
2,069
|
2,594
|
8,532
|
10,758
|
Operating margin,
%
|
8.2
|
12.4
|
8.8
|
13.2
|
Adjusted profit before
taxes
|
2,166
|
1,994
|
8,965
|
10,143
|
Profit before
taxes
|
1,693
|
2,328
|
7,293
|
10,063
|
Net cash flow from
operating activities
|
3,351
|
1,231
|
5,641
|
5,248
|
Basic earnings per
share
|
1.96
|
3.74
|
9.81
|
16.10
|
Adjusted earnings per
share
|
3.00
|
3.01
|
13.49
|
16.28
|
|
|
|
|
|
Net sales, change
y-o-y, %, Q4
|
Organic1)
|
Structure
|
Currency
|
Total
|
SKF Group
|
9.7
|
-1.8
|
13.0
|
20.9
|
Industrial
|
8.9
|
-2.0
|
12.9
|
19.8
|
Automotive
|
11.7
|
-1.6
|
13.1
|
23.2
|
1) Price, mix and volume
|
Net sales, change
y-o-y, %, 2022
|
Organic1)
|
Structure
|
Currency
|
Total
|
SKF Group
|
8.1
|
-1.5
|
11.9
|
18.5
|
Industrial
|
8.5
|
-1.5
|
11.7
|
18.7
|
Automotive
|
7.2
|
-1.4
|
12.4
|
18.2
|
1) Price, mix and volume
|
Organic sales in
local currencies,
change y-o-y, %, Q4
|
Europe,
Middle East
& Africa
|
The
Americas
|
China
& North-East
Asia
|
India
& South-East
Asia
|
SKF Group
|
14.3
|
7.2
|
2.8
|
14.5
|
Industrial
|
+++
|
++
|
+
|
+++
|
Automotive
|
+++
|
+++
|
+/-
|
+++
|
|
|
|
|
|
Organic sales in
local currencies,
change y-o-y, %, 2022
|
Europe,
Middle East
& Africa
|
The
Americas
|
China
& North-East
Asia
|
India
& South-East
Asia
|
SKF Group
|
10.0
|
9.4
|
-1.9
|
21.6
|
Industrial
|
+++
|
+++
|
+/-
|
+++
|
Automotive
|
++
|
+++
|
--
|
+++
|
Outlook and guidance
Demand for Q1 2023 compared to Q1 2022
Looking into the first quarter of 2023, we expect mid
single-digit organic sales growth.
Guidance Q1 2023
Currency impact on the operating profit is expected to be around
SEK 300 million positive compared
with the first quarter 2022, based on exchange rates per
31 December 2022.
Guidance
2023
- For the full year, we expect mid single-digit organic sales
growth, compared to 2022.
- Tax level excluding effects related to divested businesses:
around 28%.
- Additions to property, plant and equipment: around SEK 5 billion.
A teleconference will be held on 2
February 2023 at 09:00 (CET):
Sweden +46 10 884 80 16
UK / International +44 203 936 2999
Passcode: 330094
https://investors.skf.com/en
Aktiebolaget SKF
(publ)
The financial information in this press release is information
which AB SKF is required to disclose under the EU Market Abuse
Regulation (EU) No 596/2014 The information was provided by the
above contact persons for publication on 2
February 2023 at 08.00 CET.
For further information, please contact:
PRESS: Carl Bjernstam, Group Communication
tel: 46 31-337 2517; mobile: 46 722-201 893; e-mail:
carl.bjernstam@skf.com
INVESTOR RELATIONS: Patrik
Stenberg, Head of Investor Relations
tel: 46 31-337 2104; mobile: 46 705-472 104;
patrik.stenberg@skf.com
The following files are available for download:
https://mb.cision.com/Main/637/3707543/1821591.pdf
|
Q4_2022_Eng
|
https://news.cision.com/skf/i/q4,c3139967
|
Q4
|
https://news.cision.com/skf/i/rickard-gustafson,c3139968
|
Rickard
Gustafson
|
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