Views: 0 Author: Site Editor Publish Time: 2014-08-17 Origin: Site
“Sales overall developed in line with our expectations and excluding one-offs we had a good cash flow from operations and we saw a good sequential improvement in our operating margin and profit. While the business mix remained somewhat negative the steps we are taking to improve the price/mix gave positive results. Our cost reduction programme is also delivering the expected results and additional activities were announced in the quarter.
We continue to take steps to strengthen SKF and to support our long-term targets. The new campus
in Shanghai which hosts a new automotive factory, Global Technical Centre, SKF Solution Factory and SKF College was opened as was our new distribution centre also near Shanghai in the new government free trade zone. These will enable us to better support our customers in North East Asia, a region which is developing very well for us. In addition, based on our increased investment in research and development, a number of new products particularly focusing on energy savings and improved
operating performance were launched. We also gained a number of important new businesses.
Kaydon is developing well both from a sales and profitability viewpoint and the integration activities
are going according to plan. The major order which was gained from a North American wind energy
customer for business in both North America and Brazil is a great example of how the combination
of SKF and Kaydon can bring real value to our customers.
Looking forward and taking account of the continued uncertainty in the global market place we expect that in the third quarter overall demand for our products and services will stay on the same level.”
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