Bearings maker SKF profit tops forecast, sees strong demand

Release Time：23 Jul,2018

<p style="text-align:center;"> <img src="http://www.bearing.com.cn/membcentre/editor/attached/image/20180723/20180723113038_14765.jpg" alt="" /> </p> <p> Sweden's SKF, the world's biggest maker of industrial bearings, reported a bigger than expected rise in quarterly operating earnings on Thursday and forecast higher year-on-year demand for the third quarter, powered by strong growth in Asia. </p> The company has been riding a wave of strong industrial demand since the end of 2016, but fears of a global trade war have fuelled investor concerns that the industrial cycle may already be past its peak.<br /> The rival of Germany'sSchaeffler showed scant signs of slowdown with organic sales growth accelerating to 9.0 percent in the second quarter, higher than the 7.3 percent expected by analysts.<br /> Shares in the company were up 5 percent in early trade, outperforming a 0.1% rise for the European industrial sector.<br /> "Our record start to 2018 has continued," Chief Executive Alrik Danielson said in a statement. "Entering the third quarter of 2018, we expect to see continued growth for both our industrial and automotive businesses."&nbsp;<br /> The Gothenburg-based company said second-quarter operating profit rose to 2.93 billion Swedish crowns ($330.67 million) from a year-ago 2.32 billion, beating a mean forecast of 2.76 billion in a poll of analysts.&nbsp;<br /> SKF said it expected third-quarter demand to be higher than in the year-ago quarter with significantly higher activity seen in Asia and increases also in both Europe and North America.<br /> Analysts are closely watching inventory levels at industrial firms, wary of the risk of players sitting with too high stock levels if demand turns lower.&nbsp;<br /> The company said it had adjusted its production rates in the quarter, after accelerating production over the past 18 months to meet the strong market demand.&nbsp;<br /> "As foreseen and communicated in April, production has been adjusted during the second quarter, to avoid building inventories," SKF said.<br />