* Sees slightly higher overall demand in Q2 vs Q1
* Expects stable demand in Europe, higher in US, Asia
* Q1 operating profit in line with forecast
(Adds detail, background)
STOCKHOLM, April 19 (Reuters) – SKF, the world’s
biggest bearings maker, struck an upbeat note for the industrial
sector on Thursday, forecasting rising demand from the United
States and Asia and a more stable Europe after in-line quarterly
earnings.
The Swedish group, whose products are used in everything
from jets to dishwashers and which is one of the first major
manufacturers to open books on the first quarter, forecast
overall market demand would be slightly higher in the second
quarter versus the first.
“Again the main growth will be in the Americas, but we also
expect a continued improvement in Asia and a stable development
in Europe,” Chief Executive Tom Johnstone said. “All three
Business Areas are expected to show sequential growth.”
SKF saw demand being relatively unchanged in Europe,
slightly higher in North America and higher in Asia and Latin
America.
Operating earnings at Gothenburg-based SKF fell to 2.14
billion crowns ($317 million) in the first quarter from a
year-ago 2.50 billion, roughly in line with a mean forecast of
2.17 billion seen in a Reuters poll of analysts.
SKF, traditionally a highly cyclical company, basked in
strong demand through the first half of last year and racked up
record sales and earnings for 2011 despite a slowdown as the
euro zone crisis took centre stage towards the year end.
While a global company, almost half of sales come from
Europe. The International Monetary Fund forecast this week the
euro zone would suffer a recession this year despite central
bank action to fight a credit crunch.
SKF, which competes with the likes of U.S. group Timken
and Germany’s Shaeffler, said sales in the first quarter
inched up to 16.9 billion crowns from a year-ago 16.7 billion
crowns, beating the 16.6 billion seen by analysts.
Sales volumes, a better demand measure as its strips out
price, product mix and currency swings, dipped 0.8 percent,
better than the forecast 3.8 percent decline.
(Reporting by Niklas Pollard and Johannes Hellstrom; Editing by
Mark Potter)
