SKF: NO UNDERLYING RISE BEHIND THE HEIGHT FORECAST – President
2016-04-28 11:08
STOCKHOLM (AFX) Behind SKF’s forecast of a sequential slightly higher demand in the second quarter of this year compared to the first, there is no sight of the underlying upturn in demand.
It says CEO Danielson to the news agency Direkt on Thursday.
“There are two effects of last year’s first quarter ended exceptionally strong, which means that the comparative figures last year will be extra difficult. It second is to SKF’s business is normalized, but we can not see that there is no real underlying upturn, “he says, and adds:
” but we see that SKF feels like we hopefully leveled off. “
the pricing environment is still characterized by low demand in general and thus the same situation as in recent quarters, according to Danielson.
” as it is now, it is a buyer’s market ” he says, and believes that it will remain so until we see a cyclical change.
“Certainly, there is a greater pressure, but it is normal in this kind of economic climate,” he continues.
In times of price pressure and declining volumes remain cost reductions to achieve higher profitability. According to SKF, fixed costs declined by 6 percent compared with the fourth quarter of 2014. This quarter used as a base and has been assigned the number 100 in a fixed cost index, the index 94 in the last quarter, when the number of employees has decreased by more than 700 people to 46,635.
“of course, it is somewhere a relation to the volume as well. However, the sales trend has been and with the prospects we have, we will continue and hopefully we can send down any index to,” said Christian Johansson, CFO, of its fixed cost index.
Direkt
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