SKF India Reports Second Quarter 2005 Results

SKF India Ltd. (a publicly-traded subsidiary of SKF AB, Sweden) reported record sales and earnings for second quarter ended June 30, 2005. Sales in the quarter were Rs 1.78 billion (USD $40.7 million), up more than 27% over 2004's Rs 1.39 billion ($31.8 million). Net profit reached Rs 196.1 million ($4.5 million), up more than 60% over 2004's Rs 122.4 million ($ 2.8 million). Both results represent record highs for the company, which is India's largest bearing manufacturer, with an overall 30% market share across OEM and replacement market sales. Inventory on hand at the end of the quarter was up Rs 40.7 million ($1 million) from the end of 2004's second quarter, in line with sales increases. Rakesh Makhija, Managing Director of SKF India, said: "We are pleased to announce a record performance for the company in the second quarter." Mr. Makhija went on to recap recent developments: "With a growing demand for SKF products and services, we are in the process of upgrading our capacity in Bangalore and Pune plants. This will enable us to continue to serve our customers better." In 2004, sales grew by 29%, straining capacity and prompting SKF's May announcement that it is in the process of investing at least Rs 1.3 billion (USD $30 million) in both Pune and Bangalore. Together, the two plants currently employ almost 2,000 people.