SKF profits up in second quarter on rising sales

Swedish ball bearing maker SKF, a barometer of global manufacturing, posted on Tuesday growing profits for the second quarter of 2014 citing rising sales, especially in Asia, Africa and the Mideast.
SKF is the world leader in the industrial bearing business and its products are widely used in industrial processes, the automotive sector and engineering.
This makes the company's results a valuable indicator of global industrial activity.
Net profit in the second quarter rose by 7.3 percent from the level a year earlier to 1.156 billion kronor (125 million euros, $170 million).
Sales for the same period were also up by 9.5 percent to 17.955 billion kronor compared to the second quarter of 2013.
"Sales overall developed in line with our expectations," chief executive Tom Johnstone said in a statement.
Sales increases in local currency excluding structure were higher in Asia and the Middle East and Africa, where they rose by 14 percent, while growth was modest in Europe (one percent), North America (three percent) and Latin America (two percent).
In 2010, SKF launched a cost-cutting plan which will be completed this year, the company said in the second quarter of 2013.
"Our cost reduction programme is also delivering the expected results," Johnstone said.
Last October, SKF acquired US-based manufacturer Kaydon Industries, which employs 2,100 people in the US, and is "developing well both from a sales and profitability viewpoint".
The company said its short-term outlook was positive.
Demand in the third quarter is expected to be "slightly higher for the group and North America, higher for Asia, relatively unchanged for Europe and slightly lower for Latin America".
SKF shares were up by 1.53 percent around 0830 GMT on the Stockholm bourse, where the general index was down by 0.18 percent.