SKF Automotive has reported Q3 2012 revenue of SEK 4,098m (US$617.4m), down SEK 344m, or 7.7%, from the SEK 4,442m reported in the third quarter of 2011 and down 9.5% from the Q2 2012 result of SEK 4,530m. The Q3 result took revenue in the first nine months of 2012 to SEK 13,190m, versus SEK 13,843m in the January-September 2011 period, a decline of SEK 653m, or 4.7%.
The Q3 year-on-year decline was driven by a 3.5% fall in organic revenue in local currency, most notably in Europe, with an additional negative influence from currency of 4.5% but a small positive impact from consolidation variations of 0.2%.
The division’s revenue, including intra-group sales, totalled SEK 4,968m in Q3 2012, 8.9% below the Q3 2011 total of SEK 5,455m. This result took year-to-date revenue to SEK 15,991m, compared with SEK 16,990m in the previous year, a fall of 5.9%.
The division’s operating profit in the July-September 2012 quarter amounted to SEK 159m, versus SEK 360m in Q3 2011, a fall of 55.8%, resulting in the margin (based on total revenue, including intra-group) falling to 3.2% from 6.6%. The latest quarter’s margin was also a further fall from the 3.5% reported in Q2 and the Q1 result of 4.3%. Year-to-date operating profit was SEK 591m (margin of 3.7%), versus SEK 1,383m (8.1%) in the same period of the previous year, a fall of 57.3%.
The demand for SKF’s products and services in Q4 is expected to be slightly lower for the group versus Q3, for all the business areas and for Europe, Asia and North America. For Latin America demand is expected to be relatively unchanged. On a year-on-year comparison with Q4 2011, Q4 2012 demand for SKF’s products and services is expected to be lower for the group and for Europe. For Asia it is expected to be slightly lower and for North America and Latin America relatively unchanged. The demand is expected to be lower for the company’s Industrial Strategic Industries and Industrial Regional Sales and Service businesses and relatively unchanged for Automotive.
The company noted that it signed a contract with Mazda in the latest quarter for the delivery of its bonded piston seals for automatic transmissions for the current Mazda CX-5 model. Mazda will include the seals in mid-size and large-size SKYACTIV-DRIVE six speed automatic transmissions where the new low friction design of bonded piston seals helps to support improved gear change quality.
