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* SKF CEO says Europe upturn continued into June
* Says sees double-digit sales volume growth in Q2
* Says monitoring European development due debt crisis
* CEO says has "some questions" about developments in Europe
SKF, the world's top bearings maker, has seen a market upturn in Europe continue deep into the second quarter despite the sovereign debt crisis gripping the region, its top executive said on Wednesday.
Chief Executive Tom Johnstone told Reuters that Sweden-based SKF, a bellwether for the manufacturing sector with its bearings used in items ranging from jets to dishwashers, had seen the upward trend in its European home market continue in recent weeks.
"Absolutely. In the start of June we could see that," he said. "Europe is starting to move in the right direction ... We don't see a strong recovery, but it's starting to move up."
Johnstone said sales volumes at the group were likely to grow by a double digit percentage figure in the second quarter, coming in a shade more upbeat than the outlook for high single or low double digits growth given in May.
"It's difficult to determinate what the percentage will be, but it will be double digits," he said. "Asia continues to be very strong. China, India -- we still see a very strong development in that region."
"We also see some steady improvement in North America."
EYE ON EUROPE
Europe has been shaken by growing concerns over soaring public debt in recent months, unleashing a wave of fiscal retrenchment that some economists believe could stall the tentative economic recovery.
Johnstone said the impact of the sovereign debt crisis had so far not dented the recovery from the plunge in demand suffered by manufacturers such as SKF in the wake of the global financial crisis in late 2008.
"But I think that is something we have to monitor going forward. We must be clear and say there could be some affect from that. But we don't see it right now," he said.
"I do have some questions (as to) the European development. We need to monitor the European development into the second half of this year", he added.
Johnstone affirmed his forecast of the effect of price and mix on sales in the second quarter to be similar to the virtually flat development posted in the first three months of the year as well as the end of 2009.
SKF, which cut thousands of jobs to bring down costs during the downturn, will spend "a few hundred million more" in restructuring costs this year and remained on the look-out for acquisitions in all its markets, he added.
"We are analysing that and we have acquisitions very clearly on the agenda ... We have a strong financial position and we are looking at a number of areas," he said. "I would say I hope we can do something this year, but I can't guarantee it." (Reporting by Helena Soderpalm; writing by Niklas Pollard; Editing by Jon Loades-Carter)
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 60/32-2RS KOYO | 32 | 58 | 13 |
| 6306-2RS KOYO | 30 | 72 | 19 |