SKF Q1 Profit Down; Gives Cautious Q2 Outlook

(RTTNews) - AB SKF (SKUFF), A Swedish bearing and seal manufacturing company, on Friday posted lower profit in the first quarter, impacted by lower sales. The company also provided a cautious outlook for the second quarter.

Looking ahead, the company said, "We expect continued volatility and, even if we have seen signs of markets bottoming out, we plan for another quarter with negative volumes and expect organic sales to weaken somewhat in Q2, year-over-year."

For the second quarter, the company expects the currency impact on the operating profit to be around SEK 400 million negative compared to the second quarter 2024, based on exchange rates as per March 31.

In its first quarter, the company posted net profit of SEK 1.95 billion, down from SEK 2.0 billion in the same period last year. On a per share basis, basic earnings fell to SEK 3.95 from SEK 4.15 a year ago.

On an adjusted basis, net profit was SEK 2.29 billion or SEK 4.71 per share, compared to SEK 2.31 billion or SEK 4.83 per share in the previous-year quarter.

The company's operating profit in the quarter fell to SEK 2.89 billion from SEK 2.99 billion in the prior-year period. Adjusted operating profit was SEK 3.23 billion during the quarter, down from SEK 3.30 billion in the same period last year.

During the three-month period, the company's net sales came in at SEK 23.97 billion, down from SEK 24.70 billion in the year-ago quarter.

On the Stockholm Exchange, the stock is trading down 0.27 percent at SEK 182.70.