SKF reports a profit before tax of 1.592 billion crowns, compared with SME Direkt analyst forecast of 1.857 billion crowns.
The main reason for earnings miss is greater extraordinary costs than expected 655 million against the anticipated 273 million, notes Direct.
Sales landed at 19.454 billion crowns, compared with the forecast of 19.528 billion.
The result is even worse than it became the first quarter last year. Then the profit before tax 1.787 billion crowns, while sales ended up at 16734000000 – better than last year same quarter.
CEO Mr. Danielson took at the end of the year so this is the first quarter with him at the helm. He succeeded Tom Johnstone.
The report notes Danielson that all three business areas showed an increase in sales in local currencies.
– Geographical Asia showed continued good growth followed by Europe and Latin America, which remained unchanged while operations in North America slowed slightly due to lower activity in some of our most important industries, he said.
The operating profit was 1.721 billion crowns. Here was 2.113 billion crowns expected.
Looking back geographical show that sales were lower than expected in North America. This has mainly three reasons, according to the report.
First, affected industries directly and indirectly by the low level of activity in the mining industry, agriculture, forestry and oil and gas. It had negative effects on sales to customers in these industries.
The parts of the industrial operations that developed well in North America, sales of energy and other general industries than mining, agriculture, forestry and oil and gas.
The strongest geographical card, according to the report, the Asian market. Asia was characterized by the strongest sales growth in the power of a good development for the automotive and renewable energy.
Geographical developed in China and Korea best during the quarter, while growth in India was largely unchanged.
Alrik Danielson’s forward-looking prophecy means basically the status quo in terms of demand in the current quarter, compared with the first now been added to the documents.
“The demand for SKF products and services is expected to be relatively unchanged for Group as well as in Europe and North America, higher in Asia and slightly lower in Latin America. The demand by business area is expected to be relatively unchanged for both the Industrial Market and Automotive Market and slightly higher for Specialty Business “, named according to the report.
SKF has started 2015 strongly. Yesterday backed off, however, share some of the concerns that expectations of the company’s accomplishments are too high. Since the beginning and until the Stockholm Stock Exchange closed on Thursday, the B-shares rushed 37 percent.
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