SKF India Reports Second Quarter 2006 Results

SKF India Ltd. (India, a publicly-traded subsidiary of SKF AB, Sweden) reported results for fiscal second quarter 2006, ended June 30. Sales in the quarter were up a stunning 84% over 2005, to Rs 3.3 billion (USD $71 million) from Rs 1.8 billion ($39 million). Expenses in the quarter nearly doubled, however, driving net profit down sharply. Although net rose 29%, to Rs 253.2 million ($5.4 million) from 2005's Rs 196.1 million ($4.2 million), net margin was only 7.7% in 2006, from 10.6% in 2005. Rakesh Makhija, Managing Director of SKF India, said: "The market for our products and services remains strong. We continue to consolidate our presence with key customers with our five technology platforms. Our focus remains to become a value-added partner to our customers within the key markets that we operate in." The sales increase is tied to SKF India's successfully implementing aggressive moves to boost production capacity at its capacity-constrained bearing plants in Bangalore and Pune. The company is spending at least $30 million in both Pune and Bangalore to add capacity. Together, the two plants currently employ almost 2,000 people. SKF India also recently added cylindrical capacity.