SKF Year-end Report 2017

GOTHENBURG, Sweden, Feb. 1, 2018 /PRNewswire/ -- Alrik Danielson, President and CEO: "We have had a strong finish to 2017, a year characterized by strong demand in most markets. In the fourth quarter, net sales, at SEK 19.5 billion, grew organically by over 8%, with near- double-digit growth in Automotive.Europe and Asia saw strong sales growth, 9% and 10%, respectively, driven by high general levels of industrial activity and a strong automotive market. In North America, sales growth was 5%.Our focus on raising prices, for both distributors and OEMs, and controlling costs is bearing fruit. Our adjusted operating profit was SEK 2.1 billion in the quarter, an increase of SEK 350 million compared to last year. Our adjusted operating margin also improved, to 10.7% (9.3%).Within the industrial business, increased sales volumes delivered an adjusted operating margin of 12.9% (11.0%). We have secured several new business wins during the quarter, including a new, multi-year framework agreement with ArcelorMittal. This agreement covers bearings, units, seals and remanufacturing services for 14 steel mills across Europe and Northern Africa.The development of our Rotating Equipment Performance offer continues, with the launch of the next generation of our Enlight Center cloud-based data collection platform.The automotive business, which saw improved sales volumes, remains focused on technology development and reducing costs, delivering an adjusted operating profit margin of 5.9% (5.2%) in the seasonally weak fourth quarter. We are also making progress within the powertrain electrification area. Our components have been selected by several automakers, including supplying bearings for the next-generation electric powertrain platform of a leading European OEM.Continued strengthening of the balance sheet remains a priority for us. Cash flow generation was strong, at SEK 1.7 billion, an improvement of SEK 300 million compared to the previous year. Our net debt to equity ratio, now at 71%, is well below our target of 80%.Entering the first quarter 2018, we expect to see continued growth in all regions, with particular strength in Asia and Europe."