- AB SKF (OTCPK:SKFRY -5.4%) net sales fell organically by 25% to SEK16.6B; Sales in both Europe and North America decreased by about 30% Y/Y and in Asia were 10% lower compared to last year.
- Industrial sales fell by 17.9% Y/Y; and adjusted operating margin was 14% down by 170 bps.
- Automotive sales fell by 47% Y/Y; and adjusted operating margin was -8.4%.
- Q2 Adj. operating margin was 9.4% (12.7% last year), with an adjusted operating profit of SEK1.6B.
- During 1H company’s effort to reduce fixed costs regrettably resulted in a reduction of 1,350 permanent employees and 750 temporary/agency employees, contributed to restructuring costs of SEK657M.
- Cash flow during the quarter was SEK838M, as a result of the lower operating result and increased working capital.
- Company said as a result of significant level of uncertainty, it is not feasible to provide a reliable demand guidance for the third quarter.
- Guidance FY20: Tax level excluding effects related to divested businesses: around 29%; and additions to property, plant and equipment ~SEK3.3B.
- Previously: AB SKF (publ) reports Q2 results (July 21)