AB SKF Stock Price, News & Analysis

On July 20, 2022, SKF announced changes to its Group Management team. Patrick Tong, President of China and Northeast Asia, is retiring after over 30 years with the company, while Kent Viitanen, President of EMEA, is also leaving after 34 years. Tong will assist in the transition until his successor is appointed, while Aldo Cedrone steps in as interim President for EMEA. CEO Rickard Gustafson expressed gratitude for the contributions of both leaders.

SKF will release its Half-year results for 2022 on July 20 at approximately 08:00 (CEST). A webcast for investors, analysts, and media is scheduled at 09:00 (CEST), providing an opportunity to gain insights into the company's performance. Interested participants are advised to log in 10 minutes prior to the event. The full results will be accessible on SKF's Investor Relations website. For further inquiries, media representatives may contact Theo Kjellberg, while investors can reach out to Patrik Stenberg for more information.

SKF has launched the compact RecondOil Box, designed to eliminate nano-sized impurities from oil, making it versatile for various industries, including manufacturing and energy. Utilizing Double Separation Technology (DST), the system allows for extended oil change intervals and can potentially recycle oil indefinitely, yielding both cost savings and environmental benefits. A life cycle analysis indicates a significant reduction in carbon emissions, showing 8.2 kg CO₂ equivalent per m³ of oil compared to 3,830 kg CO₂ equivalent with conventional systems.

SKF reported strong first-quarter results despite external challenges from the Ukraine war and Covid in China. Net sales increased to SEK 22,942 million, with organic growth at 6.5%, primarily in industrial sectors, while automotive sales declined by -3%. Adjusted operating profit rose to SEK 3,058 million with a margin of 13.3%. However, cash flow from operations turned negative at SEK -271 million due to rising inventories. The company anticipates full-year organic sales growth between 4-8% amid ongoing uncertainties.

SKF and AWS have joined forces to enhance industrial machine reliability through advanced condition monitoring and data analysis solutions. This collaboration will leverage machine learning technologies to make predictive maintenance accessible to a broader range of customers. The initial offering combines SKF's expertise in rotating machinery with AWS's AI services, providing a scalable solution for both large enterprises and smaller manufacturers. This joint effort aims to improve operational efficiencies, leading to better maintenance planning and decision-making.

SKF has responded to media reports about its sales to companies within the Russian nuclear weapons program. The company is conducting an internal investigation, supported by external experts, after discovering a distributor sold SEK 113,000 worth of standard SKF products to an armaments company without SKF's knowledge. SKF emphasizes that it has not had direct dealings with the reported Russian entities and that these sales do not breach any sanctions or export controls. Appropriate actions will be taken regarding the distributor's breach of contract.

The Annual General Meeting (AGM) of Aktiebolaget SKF was held on March 24, 2022, via postal voting due to Covid-19 restrictions. The income statements and balance sheets were approved, along with a dividend of SEK 7.00 per share, payable to shareholders registered by March 28, 2022. Board fees were set, including SEK 2,530,000 for the Chairman and SEK 825,000 for other members. Hans Stråberg was re-elected Chairman. New principles for executive remuneration and a Performance Share Programme for 2022 were also approved.

AB SKF announces a conversion of shares from Series A to Series B effective February 28, 2022. The new share capital totals SEK 1,138,377,670 with 29,403,933 Series A shares and 425,947,135 Series B shares issued. This adjustment results in 71,998,646.5 total votes within the company. Notably, AB SKF does not possess any own shares. This disclosure fulfills the obligations under the Financial Instruments Trading Act and was published at 8:00 CET on the stated date.

SKF reported net sales for Q4 2021 of SEK 20,986 million, reflecting a 4% organic growth. The full-year net sales reached SEK 81,732 million, up from SEK 74,852 million in 2020. However, the adjusted operating margin declined to 10.8% in Q4 from 13.2% the previous year. Despite strong industrial growth of 9%, the automotive sector faced a -8% decline. SKF anticipates 5-10% organic sales growth for 2022, with plans for price increases to offset rising costs.