Sweden’s SKF, the world’s biggest maker of industrial bearings, said yesterday its second-quarter net profit rose from the figure for the same period in 2010, largely helped by an improving automobile market.

The company posted a profit of 1.71 billion Swedish kroner (€185 million) for the April-June quarter.

For the same period in 2010, it made a net profit of 1.41 billion kroner.

The results were slightly below analyst expectations, which SKF blamed on unfavourable foreign exchange and rising costs.

“We will continue to invest in our business and take the necessary steps to offset the high raw material costs and currency headwinds,” chief executive Tom Johnstone said.

The announcement sent shares in the Gothenburg-based company down by 4.9 per cent to 174.10 kroner on a Stockholm Stock Exchange which was showing a fall of one per cent. SKF said it expected demand to increase in the third quarter, especially in Asia and South America.