SKF Nine-month Report 2006

The SKF Group reports record third quarter sales, operating profit and operating margin. Net sales for the third quarter of 2006 were MSEK 12,544 (12,027), and for the first nine months MSEK 39,206 (36,637). Operating profit for the third quarter was MSEK 1,538 (1,464). The operating profit for the first nine months was MSEK 4,849 (4,059). The operating margin for the third quarter was 12.3% (12.2), and for the first nine months 12.4% (11.1). Profit before taxes for the third quarter was MSEK 1,422 (1,480). The profit for the first nine months was MSEK 4,541 (3,978). Net profit for the third quarter was MSEK 966 (1,025). Net profit for the first nine months was MSEK 3,175 (2,745). Basic earnings per share for the third quarter were SEK 2.06 (2.20), and for the first nine months SEK 6.81 (5.88). Diluted earnings per share for the third quarter were 2.05 (2.19), and for the first nine months SEK 6.79 (5.85). The increase of 4.3% in net sales for the quarter, in SEK, was attributable to: volume 3.3%, structure 1.1%, price/mix 2.0% and currency effects -2.1%. For the first nine months, the increase of 7.0%, in SEK, was attributable to: volume 4.3%, structure -1.6%, price/mix 2.0% and currency effects 2.3%. Sales development (excl. Ovako Steel in 2005) Sales for the SKF Group in the third quarter calculated in local currencies and compared to sales in the same quarter last year, were higher in Europe and Latin America, significantly higher in Asia and slightly lower in North America. Sales for the Industrial Division were significantly higher, for the Service Division higher and for the Automotive Division relatively unchanged. The manufacturing level for the third quarter of 2006 was relatively unchanged compared to the second quarter 2006 and higher compared to the third quarter last year.Outlook for the fourth quarter of 2006 (compared to the third quarter 2006) The market demand for SKF's products and services in the fourth quarter of 2006 is expected to be slightly higher. The demand is expected to be higher in Europe and Latin America, significantly higher in Asia and to be lower in North America. The demand for the Industrial and Service Division's products and services is expected to be higher and for the Automotive Division is expected to be slightly lower. The manufacturing level for the fourth quarter of 2006 will be unchanged, while higher in absolute terms due to normal seasonality.