1 / 23

The SKF Group Year-end result 2003 Tom Johnstone President and CEO

The SKF Group Year-end result 2003 Tom Johnstone President and CEO. SKF Group. Summary Q4, 2003. Good operational performance - Operating margin 10.3 % (ex restructuring and impairments) - Strong cash flow - Inventories down - Good sales growth in local currencies

heller
Download Presentation

The SKF Group Year-end result 2003 Tom Johnstone President and CEO

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The SKF Group Year-end result 2003 Tom Johnstone President and CEO

  2. SKF Group Summary Q4, 2003 • Good operational performance - Operating margin 10.3 % (ex restructuring and impairments) • - Strong cash flow • - Inventories down • - Good sales growth in local currencies • - Positive price/mix development • Key activities • - 2 factories opened in China • - New business • Restructuring and impairment activities in line with guidance • - Restructuring MSEK 282, Impairments MSEK 205 • - Booked MSEK 421 as COGS, MSEK 66 as Selling Expenses • - Main areas announced • .

  3. SKF Group Fourth quarter 2003 * excluding restructuring and impairment in Q4 2003 **after investments before financing

  4. SKF Group Full year 2003 * excluding restructuring and impairment in Q4 2003 **after investments before financing

  5. SKF Group Sales in local currency % change y-o-y 2001 2002 2003

  6. SKF Group Net sales development per quarter 2001 2002 Percent y-o-y 2003 Net sales

  7. SKF Group Operating marginAdjusted* % 2001 2002 2003 * excluding restructuring and impairment in Q4 2003

  8. SKF Group Operating margin per divisionAdjusted* % Service Industrial Electrical Automotive Aero andSteel 2001 2002 2003 * excluding restructuring and impairment in Q4 2003

  9. SKF Group Inventories as % of annual salesTarget 20% % 2001 2002 2003

  10. SKF Group Net cash* MSEK Dividend paid: 2003 Q2, MSEK 911 2002 Q2, MSEK 683 2001 Q2, MSEK 598 Dividend proposal: 2004 Q2, MSEK 1 138 2001 2002 2003 * Short-term financial assets - Loans

  11. SKF Group Net interest bearing liabilities, 2003(Short-term financial assets - loans - net postemployment benefits) MSEK

  12. SKF Group Dividend development SEK * Board proposal for 2003 dividend

  13. SKF B

  14. SKF Group Volume trend Externalsales 2003 Oct 2003 Jan 2004 Europe 57% 22% North America Asia Pacific 14% Latin America 4% Total

  15. SKF Group Volume trend Externalsales 2003 Oct 2003 Jan 2004 Industrial 23% Automotive 32% 4% Electrical 32% Service Aerospace 4%

  16. SKF Group Outlook January 2004 The market demand for the Group's products and services is expected to improve during the first quarter 2004. In Europe it is expected to be slightly higher, while it will remain relatively flat in North America. Demand is expected to increase significantly in both Asia and Latin America. Manufacturing will, as is normal during the first half of the year, be increased slightly ahead of market demand to ensure a good service level throughout the summer period.

  17. SKF Group • Target • 10 % operating margin level • 10 BSEK additional annual net sales To be reached within the 2005/2006 time period

  18. SKF GroupOperating margin - adjusted %

  19. SKF Group Sales growth in local currencies %

  20. Examples of growth areas2003 / 2002 SKF Group • China +35 % • Central and Eastern Europe +10 %

  21. Examples of growth areas2003 / 2002 SKF Group • Medical segment withinLinear Motion business 12% • Vehicle Service market 10% • SKF Railway segment 10 %

  22. SKF Group Areas in focus 2004 • Operating margin level- maintain a positive price mix - implement restructuring plan • Continued sales growth- maintain organic growth pace - acquisitions • Cash flow in line with net profit • Launch Six Sigma throughout SKF Group

  23. SKF Group Cautionary Statement This report contains forward-looking statements that are based on the current expectations of the management of SKF. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors mentioned in SKF's latest 20-F report on file with the SEC (United States Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk Factors".

More Related