SKF Brazil Reports Strong First Half Results

SKF do Brasil (Brazil, a subsidiary of SKF AB, Sweden) reported first half 2003 sales were R$94 million (USD $31.9 million), up 30% from 2002. With a plant in Cajamar, 30km north of Sao Paulo, SKF do Brasil employs approximately 500 people and now has grown to represent at least 2% of SKF's worldwide sales. While the Brazilian economy remained weak, Donizete Saints, Director of Industrial Sales, indicated SKF was able to increase sales by focusing on export-oriented business segments. Petrochemical companies, paper, cellulose, agriculture, and mining equipment are all export-oriented market segments for SKF which improved during 2003. SKF sold 4.8 million industrial bearings in Brazil during 2002; in 2003, the company expects to sell more than 7 million industrial bearings. Overall, forecasts for full-year 2003 sales are up at least 20% from 2002. Industrial bearings are the company's strongest segment; SKF controls 25% of the industrial bearing market in Brazil, representing 55% of SKF do Brasil's sales. The remainder of SKF's bearing sales in Brazil come from auto manufacturers and the automotive aftermarket. The Power Transmission Alliance (PTA), a joint venture of SKF and Goodyear which launched in 2002, is on track to generate sales of up to R$500 million (USD $170 million) over the next five years.