STOCKHOLM--SKF AB (SKF-B.SK) on Wednesday said it swung to a net
profit in fourth quarter, but demand is expected to be relatively
unchanged as it enters the first quarter of the new year.
The world's largest ball-bearing manufacturer company said net
profit for the three months ending Dec. 31 was 881 million Swedish
kronor ($106.7 million), up from a net loss of SEK2.04 billion in
the same period last year. Analysts polled by financial information
company Six expected a net profit of SEK1.2 billion for the
period.
Demand in the first quarter is expected to be slightly higher in
Asia, but it will remain flat in Europe, North America and Latin
America, it said. SKF expects it to be unchanged in Automotive
Market and Specialty Business and slightly higher for Industrial
Market.
"Sequentially, we expect the demand to be relatively unchanged
for the Group. However, the short-term demand effects of the very
low mineral and oil prices as well as the recent currency
movements, with a stronger dollar, are difficult to predict," Chief
Executive Alrik Danielson said in a statement.
This was the first interim report to be presented by
Mr.Danielson, who took over as chief executive from Tom Johnstone
on Jan. 1.
SKF said sales in the fourth quarter were SEK18.5 billion, up
from SEK16.4 billion the same period a year ago. Operating profit
was SEK1.6 billion , up from an operating loss of SEK1.5 billion a
year ago.
The board proposes an unchanged dividend of SEK5.50 per
share.
At 1211 GMT shares traded up 1.9% at SEK187.40.
Write to Christina Zander at christina.zander@wsj.com
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