Sweden-based bearings manufacturing giant SKF reported its 2021 fourth quarter and full-year financial results on Feb. 3, showing a solid rebound year from 2020, though growth was tempered by industry-wide supply chain issues in the second half of the year.
The company posted total Q4 sales of $2.31 billion, up 7.2 percent year-over-year, with organic sales up 4 percent. SKF's Diversified Industrial segment — accounting for 72.1 percent of total business — was the primary driver, as its total sales of $1.67 billion grew 12.2 percent, with organic sales of 9.1 percent. SKF's Automotive segment, meanwhile, saw Q4 sales of $640 million decline 3.8 percent overall, with organic sales down 7.9 percent.
READ MORE: SKF Moving to 'Decentralized' Operating Model, Investing in High-Growth Industries - published Feb. 3
"The strong sales development was driven by significantly higher demand in EMEA and Latin America, while demand in North America and Asia grew at a somewhat lower pace," the company said in its earnings report. "Demand was generally strong across most industries, especially within industrial drives, industrial distribution, off-highway and heavy industries."
Q4 Industrial operating profit of $254 million jumped 39.0 percent year-over-year, with margin of 15.3 percent improving 300 basis points. Automotive operating profit of $31 million fell 48.3 percent, with margin of 4.8 percent down 420 basis points. Total Q4 operating profit of $285 million improved 17.4 percent year-over-year, while total net profit of $195 million increased 10.4 percent.
For the full year, SKF's 2021 total sales of $9.00 billion increased 9.2 percent over 2020, with organic sales up 12.6 percent. Total 2021 operating profit of $1.18 billion jumped 52.2 percent, while net profit of $834 million surged 69.4 percent.
Looking ahead, SKF is expecting Q1 2022 organic sales growth in the low single-digits year-over-year, with Industrial expected to grow while Automotive is expected to decline. For the full-year, SKF expects organic sales growth of about 5 to 10 percent vs. 2021.
