SKF Q2 revenue still fell 7.5% in the first half of the year

Recently, the Swedish bearing manufacturer SKF announced that the company's second quarter profitability improved compared to the first quarter, exceeding the industry's average forecast, but operating income and net profit are still declining year-on-year.

SKF's operating income for the second quarter reached 16.39 billion kronor (about 2.49 billion U.S. dollars), down 4.6% from 17.17 billion kronor (about 2.6 billion U.S. dollars) in the second quarter of last year; second-quarter net profit was 1.1 billion kronor. (About 170 million US dollars), about 2.36 kroner per share (about 0.36 US dollars), down 11.3% year-on-year.

In February of this year, Standard & Poor's downgraded SKF’s long-term credit rating outlook to negative. This means that if the company’s profitability does not improve within a year, its long-term credit rating may be reduced. In the first quarter of this year, SKF’s net profit fell sharply by 38% from the same period last year.

SKF CEO Tom Johnstone said that the company’s second-quarter market demand exceeded its expected level released in April, and the profitability of the auto parts business has improved. It is in trucks and vehicles. The demand in the service market has obviously improved. Although SKF’s business in the industrial market did not improve, the company still received several important orders in the last quarter.

In the first half of this year, the operating income of SKF totaled 31.54 billion EK (approximately US$4.88 billion), and its operating income was 34.11 billion EK (approximately US$5.17 billion) in the same period of last year, a year-on-year decrease of 7.5%; net profit for the first half of the same period last year The 2.57 billion kroner (about 390 million U.S. dollars) fell to 1.92 billion kronor (about 290 million U.S. dollars), a year-on-year decline of 25.2%.