SKF India Reports Strong Second Quarter 2003 Results

SKF Bearings India Ltd. (a publicly-traded, 54%-owned subsidiary of SKF AB, Sweden) revealed its second quarter 2003 operating results. Sales in the quarter were Rs 1.10 billion (USD $24 million), up more than 5% from Rs 1.05 billion ($22.8 million) in 2002. Second quarter sales built on already-impressive first quarter sales of Rs 1.09 billion ($23 million), as the company continues to grow and improve segment penetration. Profit in the second quarter was Rs 62.2 million ($1.35 million), up 46% from Rs 42.7 million ($925,000) earned in 2002. Again, the second quarter built on strong first quarter profits of Rs 50 million ($1.1 million), which were up from Rs 17 million in 2002. SKF is the dominant bearing vendor in the Indian marketplace, controlling at least 30% of the country's total market and several specific sectors such as the fast-growing two-wheeler market. 60% of its sales are to vehicle OEMs and 40% to the aftermarket. The company credited higher volumes in both automotive bearings and industrial bearings, leveraged by sharply lower interest expenses due to its recent debt restructuring. During 2002, SKF offered both stock and debt offerings, and the proceeds of those offerings were used to pay down debt. That effort had a strong impact on the company's financial results. Quarterly interest expense since the debt restructuring has been more than 75% lower than in 2002.