SKF, the corporate owner of SKF Aeroengine in Falconer, is off to a record start to 2018.

The company recently released its first quarter financial statements. Sales grew by 7.5 percent to $20.6 billion and has a reported operating profit of $2.625 million. The company’s operating margin was 12.8 percent over its initial first quarter target.



“What can I say, it’s been a good quarter,” said Alrik Danielsen, SKF president and CEO in a video released on the SKF website. “We have had our highest sales ever and growth just short of 8 percent based on a very strong first quarter also last year. Profit at just short of 13 percent. We’re doing well in all our markets around the world in almost all businesses and we’re looking for a good continuous growth in the second quarter.”



Net sales for the entire SKF Group increased 4.9 percent in the first quarter of 2018 compared to the first quarter of 2017, 5.8 percent in the Industrial Division in the first quarter of 2018 compared to last year and 3 percent in the Automotive Division. Organic North American sales have increased 3.2 percent. Industrial sales were relatively unchanged in the quarter compared to the first quarter of 2017. By industry, sales to industrial drives, agricultural, food and beverage and other industrial were all significantly higher. Sales to aerospace were higher while sales to heavy industries and industrial distribution were relatively unchanged. Sales to the energy industry were significantly lower.



Automotive sales in the quarter were higher. Sales to the truck industry were significantly higher while sales to light vehicles and to the vehicle aftermarket were relatively unchanged.



“The actions we have taken to control and continually review our cost base, increase prices and focus on meeting the specific application needs of our customers are showing results,” Danielsen said. “We are delivering solid financial performance, with organic growth, operating margin and net debt to equity levels all better than our stated targets that are valid over a business cycle.”



Danielsen said the company expects to see continued growth in the second quarter in all regions and within both the industrial and automotive operations.



Among highlights of the first quarter were:



ˉ Underwater stabilizer fin replacement. SKF is the leading supplier of stabilizers. Together with the underwater repair specialist Trident Group, SKF completed the first replacement of an SKF S-type retractable Fin Stabilizer on a floating vessel.



ˉ Scotseal X-Treme wheel-end seal. SKF’s Scotseal X-Treme wheel-end seal for trucks and trailers offers superior reliability and high temperature performance, as well as a market leading warranty. Grease filling filter for automatic lubrication systems SKF has introduced its Lincoln small grease reservoir filling filter. The filter helps to minimize contaminants entering automatic lubrication systems during the filling process of smaller-sized reservoirs.



ˉ Mechanical grease overflow prevention system. SKF has introduced its Lincoln mechanical grease overflow prevention system. It improves worker safety and minimizes environmental concerns caused by such spills.



ˉ New generation of tapered roller thrust bearings. SKF has developed a new generation of tapered roller thrust bearings, optimized for the most demanding oil and gas applications. It has higher load ratings and bearing rating life extended by up to 300 percent.



ˉ Support tool for wind customers. SKF has launched the Design Verification Support Tool. It will support the verification process of main shaft bearings in the turbine environment under running conditions.