SKF Clocks 8% Sales Growth In Q3, Warns On Cost Inflation, Constrained Logistics
- SKF AB (OTC: SKFRY) reported third-quarter FY21 net sales growth of 8.3% year-over-year to SEK 20.15 billion with an organic increase of 8%.
- Adjusted EPS was SEK 4.04 versus SEK 3.80 in 3Q20.
- The industrial segment reported revenues of SEK 14.75 billion (+13.6% Y/Y) and an adjusted profit margin of 16.7%, up by 90 bps.
- The automotive segment reported sales of SEK 5.4 billion (-3.9% Y/Y) and an adjusted operating margin of 3.9%, down by 380 bps.
- The gross margin expanded by 160 bps to 27.6% for Q3. Q3 adjusted operating profit was SEK 2.67 billion compared to SEK 2.46 billion a year ago. The adjusted operating profit was positively impacted by sales and manufacturing volumes, sales prices, and customer mix.
- The quarter's cash flow generation was SEK 1.47 billion, compared to SEK 2.23 billion, mainly driven by increased inventories due to logistics bottlenecks, customer shutdowns, and higher investments.
- The company had cash and cash equivalents of SEK 13.04 billion as of 30 September 2021 and net debt of SEK 18.54 billion. The net debt/EBITDA ratio was 1.7.
- Outlook: SKF expects organic sales for the fourth quarter to be relatively unchanged compared to the fourth quarter of 2020.
- It anticipates continued challenging conditions from cost inflation and constrained logistics in Q4.
- Price Action: SKFRY shares closed lower by 0.98% at $25.35 on Monday.
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