London: SKF AB, the world’s biggest maker of bearings for cars and planes, said first-quarter profit advanced 5.4%, boosted by demand from mining, rail and energy customers in Europe and Asia.
Net income rose to 1.17 billion kronor ($172.6 million or Rs707.66 crore), or 2.56 kronor a share, from 1.11 billion kronor, or 2.44 kronor, a year earlier, Gothenburg, Sweden-based SKF said on Thursday. Sales advanced 8.1% to 14.37 billion kronor.
SKF, celebrating its 100th anniversary this year, is seen as a bellwether for global manufacturing because its bearings are used by a range of customers in industrial products. Alfa Laval AB, the world’s biggest maker of heat exchangers, said on Wednesday profit climbed 41% on demand from food makers and shipping companies. “Market demand for SKF’s products and services in the second quarter is expected to be higher,” CEO Tom Johnstone, 51, said. “Demand is expected to be higher in Europe and Latin America.”
Analysts surveyed by SME Direkt had estimated net income of 1.16 billion kronor on sales of 14.4 billion kronor. Shares of SKF have gained 25% this year, giving a market value of 72 billion kronor.