Sweden-based bearings manufacturer SKF reported its 2023 second quarter financial results on July 19, which were led by record company sales and expanded operating margin despite slower organic growth compared to past quarters.

SKF posted total 2Q sales of $2.64 billion — a 2Q company record — up from 1Q’s $2.59 billion and up 14.7% year-over-year. Meanwhile, 2Q23 organic sales growth was 7.9%, down from 10.1% in 1Q23, but the company’s ninth consecutive quarter above 5% nonetheless.

In 2Q23, SKF’s Automotive unit saw year-over-year organic sales growth of 13.8%, far ahead of 5.7% in its Industrial unit.

Geographically, SKF’s 2Q23 year-over-year organic sales (in local currencies) growth was 10.5% in Europe, Middle East & Africa; 2.9% in the Americas; 9.5% in China & Northeast Asia; and 10.0% in India & Southeast Asia.

SKF also saw record adjusted operating profit of $350 million, up from 1Q23’s $330 million and far ahead of 2Q22’s $240 million. Adjusted operating margin was 13.3% in 2Q23, topping 1Q23’s 13.1% and 2Q22’s 10.5%.

The company noted that the main drivers behind the profitability uplift were “relentless pricing and portfolio management activities conducted in all business areas.”

SKF’s 2Q23 Industrial adjusted operating margin of 15.9% significantly outperformed the 13.9% of a year earlier, while Automotive adjusted operating margin of 7.1% dwarfed the 1.5% it had a year earlier.

The company’s 2Q23 reported operating profit of $310 million (11.8% margin) more than doubled the $150 million (6.7%) of a year earlier and trailed 1Q23’s $330 million (12.7%).

SKF’s 2Q23 net profit of $280 million dwarfed the $110 million it had a year earlier and trailed 1Q23’s $290 million.

Looking forward, SKF said it expects 3Q23 year-over-year organic sales growth to be in the mid-single digits, and full-year organic growth in the high-single digits vs. 2022.