Sweden-based bearings manufacturer SKF reported its 2020 second quarter financial results on Tuesday, reflecting a major drop in demand for industrial products that began even before the COVID-19 pandemic and has been exacerbated by it.
SKF reported Q2 sales of $1.9 billion, down 25 percent year-over-year both overall and organically, compared to a Q1 overall decline of 5.6 percent. The company said Q2 sales in North America and Europe each fell by approximately 30 percent, while Asia sales were down about 10 percent.
The company said its Industrial business saw Q2 organic sales fall 17 percent year-over-year, while its Automotive business saw a whopping 45 percent organic sales drop.
Q2 profit, meanwhile, plummeted 73.7 percent year-over-year to $75.4 million.
"We continued to reduce costs and adjusted the size of the business, with the ambition to be even more flexible and to support customers in an even better way," SKF said Tuesday. "Investments in modernizing and automating our factories, as well as increasing our regional manufacturing capacity continued."
For the first six months of 2020, SKF's sales of $4.1 billion were down 16.6 percent year-over-year, with profit down 43.5 percent to $330.9 million.