SKF Group Holds Telephone Conference to Discuss Market Performance in the First Half of the Year

About the SKF Group, the results of the first half of 2011.
Tom Johns President and Chief Executive Officer:
“The demand development in the first quarter is very much in line with our expectations. Together with our actions, we believe that we can record operating profit and interest rates. This is also a good start. Our department has played a positive role in sales in various regions. We plan to increase investment and support our business so that we can complete our financial goals.The increase in uncertainty requires the development of the market, we expect a good development.In addition to the normal seasonal impact, we will continue to increase investment In terms of business, we will take necessary measures to offset high raw materials and costs and respond to the market crisis."

President and CEO Tommy Johnston:
“As we expected, the strong market demand in the first quarter combined with some of the measures taken has brought our operating profit, operating profit margin and cash flow to record highs. In local currency, our sales are at all The regional and business divisions have had strong growth. According to the plan, we have increased investment in related business areas to support our long-term planning and financial goals."
In spite of the uncertainties and the impact of normal seasonal factors, we expect the Group to have a good market demand in the third quarter. We will continue to invest in business areas and take necessary measures to offset the impact of rising raw material costs and exchange rate changes.

　 YTD YTD Q2 Q2 Key Indicators 2011 2010 2011 2010 Net Sales, SEK SEK 16,712 15,709 33,414 30,155 Operating Profit, SEK Km 2,623 2,239 5,127 3,941 Operating Margin, % 15.7 14.3 15.3 13.1 Profit Before Tax, SEK 2,446 2,047 4,764 3,551 Net profit, SEK 1,743 1,451 3,363 2,521 Basic earnings per share, SEK 3.76 3.09 7.2 5.36
Net sales, SEK million Million Credits: Sales volume price/product composition Structure Exchange rate effect Total 12.60% in the second quarter 1.60% 4.40% -12.20% 6.40% Half year 16.10% 1.50% 4.70% -11.50% 10.80%
In the local currency, sales in the second quarter were comparable to the same period last year.
The group company's sales have achieved significant growth, increasing by 14.2% compared with the same period of last year. Europe grew by 14.0%, North America by 15.8%, Asia by 16.9%, and Middle East and Africa by 12.2%. Latin America only grew by 2.9% due to the introduction of new warehouse-style operations.
Compared with the same period of last year, the manufacturing level has significantly improved.
Outlook The market demand in the third quarter of 2011 compared to the same period of last year is expected to be in Asia and Latin America. The demand for the SKF Group and its products and services will increase significantly. The Ministry of Industry and Services increased significantly, and the automotive department increased.
Compared to the third quarter of 2011 (consider seasonal price changes)
The market demand for SKF Group and its products and services increased slightly in North America, the European region remained basically unchanged, the Asian region improved, and Latin America will see significant growth. The Ministry of Industry and Services is expected to grow slightly, and the automotive division will remain basically the same.
The production level of production level showed a significant annual increase, which was basically the same as the second quarter of the current year. (consider seasonal price changes)