SKF has reported record profits and record sales for the full year and for the fourth quarter of 2006. Furthermore SKF is forecasting continued volume growth for the first quarter of 2007 and the company has announced new long-term targets.
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Net sales for the fourth quarter of 2006 were SEK13,895m (up from 12,648m a year earlier). Sales during the full year growth came from all regions, particularly Asia, while sales in North America were relatively unchanged. North American sales had been hit in the third quarter by declines in US production.
Operating profit for the fourth quarter was SEK 1,858 million (1,268), and for the full year its was s SEK 6,707 million (5,327). The operating margin for the fourth quarter was 13.4% (10.0%), and for the full year 12.6% (10.8%).
Net profit for the fourth quarter was SEK 1,257 million (862). Net profit for the full year was SEK 4,432 million (3,607).
The firm also unveiled a new set of financial targets, saying it now aimed for an operating margin of 12% and sales growth of six to eigth percent per year. Its previous financial targets were for an operating margin of at least ten percent and average annual sales growth of six percent.
