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SKF Interim / Quarterly Report 2022
2973_10-q_2022-10-25_39293cbd-5ec6-4677-8e4a-1bc731d70cd3.pdf
Interim / Quarterly Report
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EKF
Nine-month report 2022
Press release 25 October
Q3 2022
- Net sales of SEK 24,975 million (20,146).
- Organic growth 11.0%.
- Adjusted operating profit of SEK 2,131 million (2,672).
- Operating profit SEK 1,929 million (2,588).
- Adjusted operating margin 8.5% (13.3%).
- Industrial 10.8% (16.5%).
- Automotive 3.0% (4.5%).
- Operating margin 7.7% (12.8%).
- Industrial 9.7% (16.2%).
- Automotive 2.8% (3.8%).
- Net cash flow from operations SEK 1,268 million (2,514).
- Basic earnings per share SEK 2.41 (3.86).
Nine-month 2022
- Net sales of SEK 71,572 million (60,746).
- Organic growth 7.6%.
- Adjusted operating profit of SEK 7,662 million (8,579).
- Operating profit SEK 6,463 million (8,165).
- Adjusted operating margin 10.7% (14.1%).
- Industrial 13.7% (16.8%).
- Automotive 3.0% (7.4%).
- Operating margin 9.0% (13.4%).
- Industrial 11.9% (15.9%).
- Automotive 1.8% (7.3%).
- Net cash flow from operations SEK 2,290 million (4,017).
- Basic earnings per share SEK 7.85 (12.36).
Financial overview
| MSEK unless otherwise stated | Q3 2022 | Q3 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Net sales | 24,975 | 20,146 | 71,572 | 60,746 |
| Adjusted operating profit | 2,131 | 2,672 | 7,662 | 8,578 |
| Adjusted operating margin, % | 8.5 | 13.3 | 10.7 | 14.1 |
| Operating profit | 1,929 | 2,588 | 6,463 | 8,165 |
| Operating margin, % | 7.7 | 12.8 | 9.0 | 13.4 |
| Adjusted profit before taxes | 1,820 | 2,524 | 6,799 | 8,150 |
| Profit before taxes | 1,618 | 2,440 | 5,600 | 7,736 |
| Net cash flow from operating activities | 1,268 | 2,514 | 2,290 | 4,017 |
| Basic earnings per share | 2.41 | 3.86 | 7.85 | 12.36 |
| Adjusted earnings per share | 2.86 | 4.04 | 10.49 | 13.27 |
Operating margin¹)
Revenue growth²)
Net debt/Equity³)
ROCE¹)
Net zero by 2030⁴)
SKF's long-term targets shall be achieved over a business cycle
1) Adjusted for items affecting comparability.
2) Including acquisitions, adjusted for divestments.
3) Excluding pension liabilities.
4) Scope 1 & 2 C0,e from all SKF manufacturing and logistics units.
SKF Nine-month report 2022
Strong organic sales growth; severe cost inflation impacting results
Review of the third quarter
During the third quarter, we delivered strong organic sales growth of 11%, a clear indication that we are relevant for our customers. Our business in India and the Americas delivered a very strong overall performance and China maintained its solid performance, despite Covid-lockdowns. Our performance in EMEA was hampered by unprecedented cost inflation. We are delivering on our strategic transformation, with double-digit growth in targeted industries, while continuing to transform our portfolio and reduce fixed costs.
We continue to leverage our pricing power and have been successful in increasing prices and pruning our portfolio to further strengthen our business and market position. These efforts have resulted in another quarter with a growing, positive price/mix contribution of SEK 1.8 billion. As indicated last quarter, cost inflation continues to accelerate, especially in Europe, having a negative impact of SEK 2.9 billion in the quarter.
On a positive note, we saw a somewhat reduced inflation rate for steel components and logistics at the end of the quarter. The adjusted operating margin came in at approximately 9%, driven by a challenging cost inflation, negative mix impact from high automotive growth, and our dependence on manufacturing in Europe. Considering our unhedged exposure to cost inflation, we expect to see margin tailwind once inflation and energy prices start to normalize.
Within Industrial, organic growth was 8%, driven by industrial distribution, heavy industries and agriculture. The adjusted operating margin was 11%, impacted mainly by material and energy costs, not entirely offset by a positive price/mix contribution. Our leading position in our most significant and profitable business area continues to support our growth ambitions. For example, we have recently extended our full-service agreement with a leading renewable packaging producer in North America, covering bearings, seals, lubrication, application engineering and condition monitoring.
In Automotive, demand rebounded strongly from last year with an organic growth of 18%, driven by light vehicles. The adjusted operating margin was 3%, mainly driven by material and energy inflation, which was not fully offset by a positive price/mix. Our ceramic bearing offer to the EV industry continues to strengthen, with significant new OEM contracts signed in both China and Europe. This is in line with our strategic portfolio shift as ceramic bearings have more attractive margins. At the same time, we continue to exit low margin and non-strategic businesses such as components for small, combustion-powered passenger cars.
Net cash flow from operations was SEK 1,268 million. Net working capital as a percentage of sales increased to 36%, driven by exchange rate fluctuations. Sequentially, inventory levels reduced in Q3, as we continue to prioritize customers, reduce excess stock and optimize our supply chains.
Delivering on our strategic transformation
In line with our strategy to drive profitable growth, we have initiated a group wide program to increase flexibility and reduce fixed costs across the Group, especially in Europe. In total,
we expect the full run-rate savings of these activities to reach SEK 2 billion by the end of 2023, with anticipated restructuring costs of approximately SEK 1 billion and a net reduction of approximately 1,000 positions, predominantly in Europe.
Among the key ongoing actions are the implementation of a simplified operational and sales organization in EMEA, reshaping of support functions, including pruning our IT portfolio and bringing forward the final steps of our finance transformation program. We are increasing the pace of development within Connected Technology by focusing more on external partnerships. Consultancy and indirect expenditure is being reduced across the Group. In addition, we are increasing our targeted efforts to further improve pricing, reduce inventories, drive procurement and logistics.
We continue to invest in our regional manufacturing capabilities and in making our factories more efficient. We are also continuing to consolidate our footprint. As a result, the factories in Avon, Avallon, Poggio Rusco and Pianezza will be closed, with customers being served from other sites.
Outlook
Looking into the fourth quarter of 2022 we expect organic sales growth of about 10% and, as a result, we expect organic growth for the full year to end in the upper part of our previously guided range of about 4-8%.
We expect to see continued volatility and geopolitical uncertainty in the markets and as a result, we expect continued high levels of cost inflation, supply chain bottlenecks and volatile demand.
Rickard Gustafson
President and CEO
SKF Nine-month report 2022
Financial performance
Third quarter 2022
Operating profit for the third quarter was SEK 1,929 million (2,588). Operating profit included items affecting comparability of SEK -202 million (-84), whereof SEK -154 million (-84) related to ongoing restructuring and cost reduction activities mainly in Europe and SEK -48 million (0) related to impairments.
The adjusted operating profit for the third quarter was SEK 2,131 million (2,672). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by cost increases, mainly related to material and energy costs.
| Adjusted operating profit bridge, MSEK | Q3 |
|---|---|
| 2021 | 2,672 |
| Currency impact | 288 |
| Divested businesses | -54 |
| Organic sales & Manufacturing volumes | 2,083 |
| Cost development | -2,858 |
| 2022 | 2,131 |
- Financial income and expense, net was SEK -311 million (-148). Exchange rate fluctuations had a more negative effect in the third quarter 2022, compared to the third quarter 2021.
- Taxes in the quarter was SEK -394 million (-618) resulting in an effective tax rate of 24.3% (25.3%).
- Net cash flow from operating activities in the third quarter was SEK 1,268 million (2,514). The change is mainly driven by the lower operating profit and negative impact from changes in working capital.
- Net working capital in percent of annual sales was 35.6% in the third quarter compared to 30.5% in the third quarter 2021. The ratio was negatively affected by currency effects and higher inventory levels.
- Provisions for post-employment benefits net decreased by SEK -707 million (-79) driven by actuarial gains on gross obligation due to increased discount rates.
Nine-month 2022
Operating profit for the first nine months was SEK 6,463 million (8,165). Operating profit included items affecting comparability of SEK -1,198 million (-414), whereof SEK -675 million related to the divestment of the business in Russia, SEK -449 million (-414) related to ongoing restructuring and cost reduction activities mainly in Europe and SEK -74 million (0) related to customer settlements and impairments.
The adjusted operating profit for the first nine months was SEK 7,662 million (8,579). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by cost increases, mainly related to material, energy and logistic costs.
| Adjusted operating profit bridge, MSEK | 2022 |
|---|---|
| 2021 | 8,579 |
| Currency impact | 817 |
| Divested businesses | -125 |
| Organic sales & Manufacturing volumes | 4,718 |
| Cost development | -6,327 |
| 2022 | 7,662 |
- Financial income and expense, net was SEK -863 million (-429). Exchange rate fluctuations had a more negative effect in 2022 compared to 2021.
- Taxes in the first nine months was SEK -1,729 million (-1 925) resulting in an effective tax rate of 30.9% (24.9%). The tax rate in 2022 was negatively impacted by the loss from divestment of business in Russia in the second quarter. Tax rate excluding the impact from the divestment was 27.6%.
- Net cash flow from operating activities was SEK 2,290 million (4,017). The change is mainly driven by the lower operating profit and negative impact from changes in working capital.
- Net working capital in percent of annual sales was 35.6% in September 2022 compared to 30.5% in September 2021. The ratio was negatively affected by currency effects and higher inventory levels.
- Provisions for post-employment benefits net decreased by SEK -4,197 million (-2,034) driven by actuarial gains on gross obligation due to increased discount rates.
| Key figures | 30 Sep 2022 | 30 June 2022 | 30 Sep 2021 |
|---|---|---|---|
| Net working capital, % of 12 months rolling sales | 35.6 | 35.7 | 30.5 |
| ROCE for the 12-month period, %^{1)} | 12.6 | 13.7 | 15.6 |
| Net debt/equity, % | 35.2 | 37.7 | 44.0 |
| Net debt/equity, excluding post-employment benefits, % | 21.6 | 21.8 | 12.9 |
| Net debt/EBITDA, % | 1.5 | 1.5 | 1.4 |
1) Adjusted for items affecting comparability.
SKF Nine-month report 2022
Sales
| Net sales, change y-o-y, % | Q3 | Jan-Sep 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Organic^{1)} | Structure | Currency | Total | Organic^{1)} | Structure | Currency | Total | |
| SKF Group | 11.0 | -2.0 | 15.0 | 24.0 | 7.6 | -1.3 | 11.5 | 17.8 |
| Industrial | 8.3 | -2.0 | 14.0 | 20.3 | 8.4 | -1.3 | 11.3 | 18.4 |
| Automotive | 18.4 | -2.2 | 17.8 | 34.1 | 5.7 | -1.3 | 12.2 | 16.6 |
1) Price, mix and volume
| Organic sales in local currencies, change y-o-y, % | Q3 | Jan-Sep 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Europe, Middle East & Africa | The Americas | China & North-East Asia | India & South-East Asia | Europe, Middle East & Africa | The Americas | China & North-East Asia | India & South-East Asia | |
| SKF Group | 9.9 | 12.9 | 5.8 | 23.6 | 8.7 | 10.0 | -3.6 | 24.3 |
| Industrial | +++ | +++ | + | +++ | +++ | +++ | +/- | +++ |
| Automotive | +++ | +++ | +++ | +++ | ++ | +++ | --- | +++ |
| Customer industries | Q3 | Jan-Sep 2022 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Europe, Middle East & Africa | The Americas | China & North-East Asia | India & South-East Asia | Europe, Middle East & Africa | The Americas | China & North-East Asia | India & South-East Asia | |
| Organic sales in local currencies, change y-o-y: | ||||||||
| Industrial distributors | +++ | ++ | +++ | +++ | +++ | +++ | +++ | +++ |
| High-speed machinery & electrical drives | +++ | +++ | +/- | +++ | +++ | +++ | + | +++ |
| Other | +++ | + | - | ++ | +++ | +++ | - | +++ |
| Renewable energy | --- | ++ | +++ | +++ | --- | --- | --- | +++ |
| Heavy industries | +++ | + | +++ | +++ | +++ | - | +++ | +++ |
| Aerospace | --- | +/- | --- | +/- | -- | - | --- | +/- |
| Railway | +++ | +++ | - | +++ | ++ | +++ | +++ | +++ |
| Agriculture, food and beverage | +++ | +++ | +/- | ++ | +++ | +++ | +++ | + |
| Off-highway | +/- | - | --- | +++ | +/- | -- | --- | +++ |
| Marine | +++ | --- | +/- | ++ | +++ | +/- | --- | +++ |
| Material handling | +++ | +++ | +++ | +++ | +++ | +++ | +/- | - |
| Automation | +++ | +++ | +++ | +/- | +++ | +++ | ++ | +++ |
| Traditional energy | +++ | +++ | ++ | +++ | +/- | +++ | +++ | +++ |
| Light vehicles | +++ | +++ | +++ | +++ | +/- | ++ | +++ | +++ |
| Vehicle aftermarket | ++ | +++ | ++ | - | +++ | +++ | ++ | +++ |
| Commercial vehicles | +++ | +++ | --- | +/- | + | ++ | --- | +++ |
Net sales by customer industry for Industrial Q3 2022
Net sales by region for Industrial Q3 2022
Net sales by customer industry for Automotive Q3 2022
Net sales by region for Automotive Q3 2022
SKF Nine-month report 2022
Segment information¹)
MSEK unless otherwise stated
| Industrial | Automotive | |||||||
|---|---|---|---|---|---|---|---|---|
| Q3 2022 | Q3 2021 | Jan-Sep 2022 | Jan-Sep 2021 | Q3 2022 | Q3 2021 | Jan-Sep 2022 | Jan-Sep 2021 | |
| Net sales | 17,735 | 14,747 | 51,369 | 43,424 | 7,240 | 5,399 | 20,203 | 17,322 |
| Adjusted operating profit | 1,916 | 2,430 | 7,061 | 7,289 | 215 | 242 | 601 | 1,290 |
| Adjusted operating margin, % | 10.8 | 16.5 | 13.7 | 16.8 | 3.0 | 4.5 | 3.0 | 7.4 |
| Operating profit | 1,724 | 2,384 | 6,109 | 6,904 | 205 | 204 | 354 | 1,261 |
| Operating margin, % | 9.7 | 16.2 | 11.9 | 15.9 | 2.8 | 3.8 | 1.8 | 7.3 |
¹) Previously published figures for 2021 and Q1 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
Industrial
Comments on organic sales in local currencies in the third quarter 2022, compared to third quarter 2021
Europe, Middle East & Africa
Overall, sales were significantly higher in the quarter. By industry, sales to most industrial segments were significantly higher. The exceptions were off-highway that was relatively unchanged and renewable energy and aerospace that was significantly lower.
The Americas
Sales were significantly higher in the quarter. By industry, sales to high-speed machinery & electrical drive, railway, agriculture, food & beverage as well as material handling, automation and traditional energy were all significantly higher. It was higher to industrial distributors and renewable energy and slightly higher to off-highway. To aerospace it was relatively unchanged while it was significantly lower to marine.
China & North-East Asia
Overall, sales were slightly higher in the quarter. It was significantly higher to industrial distributors, renewable energy, heavy industries, material handling and automation. To traditional energy it was higher and to high-speed machinery & electrical drives, agriculture, food & beverage and marine it was relatively unchanged. To other and railway it was slightly lower and to aerospace and off-highway it was significantly lower.
India & South-East Asia
Overall, sales were significantly higher in the quarter. By industry, sales to most industrial segments were significantly higher. The exceptions were other, agriculture, food & beverage and marine with higher sales and aerospace and automation with relatively unchanged sales.
Automotive
Comments on organic sales in local currencies in the third quarter 2022, compared to third quarter 2021
Europe, Middle East & Africa
Sales in the quarter were significantly higher compared to last year with significantly higher sales to light and commercial vehicles and higher sales to the vehicle aftermarket.
The Americas
Sales in the quarter were significantly higher compared to last year, with significantly higher sales to all automotive segments.
China & North-East Asia
Sales were significantly higher in the quarter with significantly higher sales to light vehicles, higher sales to the vehicle aftermarket and significantly lower sales to commercial vehicles.
India & South-East Asia
Sales in the quarter were significantly higher compared to last year with significantly higher sales to light vehicles, relatively unchanged to commercial vehicles and slightly lower sales to the vehicle aftermarket.
SKF Nine-month report 2022
Industrial
Comments on operating profit 2022, compared to 2021
Third quarter 2022
The adjusted operating profit for the third quarter was SEK 1,916 million (2,430). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by material and energy costs.
| Adjusted operating profit bridge, MSEK | Q3 |
|---|---|
| 2021 | 2,430 |
| Currency | 213 |
| Divested businesses | -39 |
| Organic sales & Manufacturing volumes | 1,431 |
| Cost development | -2,119 |
| 2022 | 1,916 |
Nine month 2022
The adjusted operating profit for the first nine months was SEK 7,061 million (7,289). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by material, energy and logistic costs.
| Adjusted operating profit bridge, MSEK | 2022 |
|---|---|
| 2021 | 7,289 |
| Currency | 604 |
| Divested businesses | -90 |
| Organic sales & Manufacturing volumes | 3,791 |
| Cost development | -4,533 |
| 2022 | 7,061 |
Automotive
Comments on operating profit 2022, compared to 2021
Third quarter 2022
The adjusted operating profit for the third quarter was SEK 215 million (242). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by material and energy costs.
| Adjusted operating profit bridge, MSEK | Q3 |
|---|---|
| 2021 | 242 |
| Currency | 75 |
| Divested businesses | -15 |
| Organic sales & Manufacturing volumes | 652 |
| Cost development | -739 |
| 2022 | 215 |
Nine month 2022
The adjusted operating profit for the first nine months was SEK 601 million (1,290). The adjusted operating profit was positively impacted by sales volumes, price, customer mix and currency effects. Operating profit was negatively impacted by material, energy and logistic costs.
| Adjusted operating profit bridge, MSEK | 2022 |
|---|---|
| 2021 | 1,290 |
| Currency | 213 |
| Divested businesses | -35 |
| Organic sales & Manufacturing volumes | 927 |
| Cost development | -1,794 |
| 2022 | 601 |
SKF Nine-month report 2022
8 SKF Nine-month report 2022
Outlook and Guidance
Demand for Q4 2022 compared to Q4 2021
For the fourth quarter of 2022 we expect an organic sales growth of about 10%.
Guidance for Q4 2022
Currency impact on the operating profit is expected to be around SEK 400 million positive compared with the fourth quarter 2021, based on exchange rates per 30 September 2022.
Guidance 2022
- For the full year we expect organic growth to end in the upper part of our previously guided range of about 4-8%.
- Tax level excluding effects related to divested businesses: around 28%.
- Additions to property, plant and equipment: around SEK 5 billion.
Significant events
21 July – SKF and Quaker Houghton enter collaboration
SKF and Quaker Houghton, the global leader in industrial process fluids, have entered into a new collaboration to offer industrial customers a fully circular use of industrial oil.
24 August – Changes to Group Management
SKF announced the appointment of Annika Ölme as CTO and Senior Vice President, Technology Development. Annika joined SKF from SAAB Radar Solutions, where she was CTO and Head of Engineering.
8 September – Green Bond
SKF issued its second Green Bond, which will raise EUR 400 million to fund eligible green projects in accordance with the Group's Green Finance Framework.
8 September – Milestone reached towards net zero bearing production
Together with Swedish steel producer Ovako, SKF has produced a Spherical Roller Bearing (SRB) with 90% less emissions than its standard SRB bearing.
16 September – Changes to Group Management
SKF announced the appointment of Henry Wang as President, China and North-East Asia. Henry joined SKF from Alstom, where he was President for the operations in China.
Previous outlook and guidance statement
Demand for Q3 2022 compared to Q3 2021
Looking into the third quarter of 2022, we expect a high single-digit organic sales growth, with an expected recovery in Automotive demand compared to the same quarter last year.
We expect that the high level of volatility in the markets continues with the ongoing war in Europe, high inflation, a risk for Covid-19 related restrictions across many geographies, supply chain bottlenecks and a volatile demand.
Guidance for Q3 2022
Currency impact on the operating profit is expected to be around SEK 350 million positive compared with the third quarter 2021, based on exchange rates per 30 June 2022.
Guidance 2022
- For the full year 2022, we expect an organic sales growth of about 4-8%.
- Tax level excluding effects related to divested businesses: around 28%.
- Additions to property, plant and equipment: around SEK 5 billion.
Subsequent events
10 October – SKF magnetic bearings
SKF's magnetic bearing technology has been selected by Finnish cleantech company Tamturbo for their high-speed turbo motors used in industrial air compressors. SKF's magnetic bearings, are playing a key role in reducing CO2 emissions across a range of industrial applications.
Sustainability performance
SKF has been publicly reporting on sustainability performance for many years, for example, in the Group's annual report and on skf.com. Reflecting the increasing operational and strategic importance of these issues, the Group is also including certain related KPI's in the quarterly reports.
Cleantech revenues
Cleantech revenues are the aggregated sales to acknowledged cleantech sectors such as renewable energy, electric vehicles, recycling industry and bearing remanufacturing. The decline in cleantech revenues is mainly due to a decline in the wind industry, however partly offset by an increase in the electric vehicles industry.
1) Previously published figures for 2020 have been restated to reflect a change in classification.
2) 2022 figures relate to the latest 12 months period.
Accident rate
The accident rate measures the number of recordable accidents per 100 employees per year. There has been a considerable reduction in the accident rate over the past 5 years.
1) 2022 figures relate to the latest 12 months period.
CO₂ emissions, Equivalent energy
CO₂ emissions¹) for SKF's operations (Scope 1 and 2 according to the Greenhouse Gas protocol) and total energy use for the same scope are presented in the graph. SKF continues to make good progress towards the Group's goal to be net zero for these aspects by 2030.
1) Due to external reporting constraints, this data is presented for the end of the previous quarter.
9 SKF Nine-month report 2022
Notes
Note 1 Accounting principles
The consolidated financial statements of the SKF Group were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report was prepared in accordance with IAS 34 Interim Financial Reporting.
Disclosure as required by IAS 34 p. 16 A is provided in the notes to the financial statements as well as in other parts of the interim report. The financial statements of the Parent Company were prepared in accordance with the "Annual Accounts Act" and the RFR 2 "Accounting for legal entities". SKF Group and the Parent Company applied the same accounting principles and methods of computation in the interim financial statements as compared with the latest annual report. IASB issued several amended accounting standards that were endorsed by EU, effective date 1 January 2022. None of these have a material effect on the SKF Group's financial statements.
Valuation principles and classifications of the financial instruments, as described in SKF Annual report 2021, have been consistently applied throughout the reporting period. There are no major changes in fair value during the period.
Note 2 Transactions with relates parties
No significant change is present for transactions with related parties in relation to disclosure provided in Annual Report 2021.
Note 3 Risks and uncertainties in the business
The SKF Group operates in many different industrial and geographical areas that are at different stages of the economic cycle. A general economic downturn at global level, for example caused by a pandemic, or in one of the world's leading economies, could reduce the demand for the Group's products, solutions and services for a period of time. In addition, terrorism and other hostilities, as well as disturbances in worldwide financial markets and natural disasters, could have a negative effect on the demand for the Group's products and services. There are also political and regulatory risks associated with the wide geographical presence.
The SKF Group is subject to both transaction and translation of currency exposure. For commercial flows the SKF Group is primarily exposed to the EUR, USD and CNY. As the major part of the profit is made outside Sweden, the Group is also exposed to translational risks in all the major currencies. The financial position of the parent company is dependent on the financial position and development of the subsidiaries. A general decline in the demand for the products and services provided by the Group could mean lower residual profits and lower dividend income for the parent company, as well as a need for writing down values of the shares in the subsidiaries.
SKF is subject to an investigation in Brazil by the General Superintendence of the Administrative Council for Economic Defense, regarding an alleged violation of antitrust rules by several companies active on the automotive aftermarket in Brazil.
SKF's operations are affected by the ongoing conflict in Ukraine. SKF operates in Ukraine with approximately 1,100 employees. Sales in Ukraine amounted to less than 0.5% of SKF's total sales in 2021. SKF's factory in Lutsk, Ukraine, accounted for a production volume of approximately 1% of SKF's total production volume in 2021. The factory in Ukraine has been producing whenever possible due to prevailing circumstances however at lower level than normal.
For a more detailed description of risks and uncertainties, please see the Risk Management section on pages 42-44 in the SKF Annual Report 2021.
Gothenburg, 25 October 2022
Aktiebolaget SKF (publ)
Rickard Gustafson
President and CEO
This report has not been reviewed
by AB SKF's auditors.
SKF Nine-month report 2022
Condensed consolidated income statements
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Net sales | 24,975 | 20,146 | 71,572 | 60,746 |
| Cost of goods sold | -19,223 | -14,582 | -53,453 | -43,147 |
| Gross profit | 5,752 | 5,564 | 18,119 | 17,599 |
| Research and development cost | -779 | -648 | -2,350 | -1,984 |
| Selling and administrative expenses | -2,831 | -2,385 | -8,704 | -7,514 |
| Other operating income/expenses, net | -213 | 57 | -602 | 64 |
| Operating profit | 1,929 | 2,588 | 6,463 | 8,165 |
| Financial income and expense, net | -311 | -148 | -863 | -429 |
| Profit before taxes | 1,618 | 2,440 | 5,600 | 7,736 |
| Taxes | -394 | -618 | -1,729 | -1,925 |
| Net profit | 1,224 | 1,822 | 3,871 | 5,811 |
| Net profit attributable to: | ||||
| Shareholders of AB SKF | 1,099 | 1,756 | 3,576 | 5,627 |
| Non-controlling interests | 125 | 66 | 295 | 184 |
| Basic earnings per share (SEK)^{1)} | 2.41 | 3.86 | 7.85 | 12.36 |
1) Shares from the Performance Share Programme are not considered dilutive, therefore diluted earnings per share is equal to basic earnings per share.
Condensed consolidated statements of comprehensive income
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Net profit | 1,224 | 1,822 | 3,871 | 5,811 |
| Items that will not be reclassified to the income statement: | ||||
| Remeasurements (actuarial gains and losses) | 696 | -30 | 4,907 | 2,134 |
| Income taxes | -52 | 5 | -1,136 | -545 |
| 644 | -25 | 3,771 | 1,589 | |
| Items that may be reclassified to the income statement: | ||||
| Exchange differences arising on translation of foreign operations | 1,688 | 778 | 5,117 | 1,892 |
| Assets at fair value through other comprehensive income | 10 | 76 | 28 | 93 |
| Income taxes | 1 | - | 4 | 1 |
| 1,699 | 854 | 5,149 | 1,986 | |
| Other comprehensive income, net of tax | 2,343 | 829 | 8,920 | 3,575 |
| Total comprehensive income | 3,567 | 2,651 | 12,791 | 9,386 |
| Shareholders of AB SKF | 3,361 | 2,543 | 12,300 | 9,127 |
| Non-controlling interests | 206 | 108 | 491 | 259 |
SKF Nine-month report 2022
Condensed consolidated balance sheets
| MSEK | September 2022 | December 2021 |
|---|---|---|
| Goodwill | 12,749 | 10,924 |
| Other intangible assets | 6,636 | 6,018 |
| Property, plant and equipment | 24,506 | 20,723 |
| Right of use asset leases | 2,910 | 2,661 |
| Deferred tax assets | 3,208 | 3,839 |
| Other non-current assets | 1,807 | 1,674 |
| Non-current assets | 51,816 | 45,839 |
| Inventories | 26,769 | 20,997 |
| Trade receivables | 17,996 | 13,972 |
| Other current assets | 6,341 | 5,163 |
| Other current financial assets | 12,801 | 13,657 |
| Current assets | 63,907 | 53,789 |
| Total assets | 115,723 | 99,628 |
| Equity attributable to shareholders of AB SKF | 53,101 | 43,645 |
| Equity attributable to non-controlling interests | 2,155 | 1,720 |
| Long-term financial liabilities | 21,412 | 15,472 |
| Provisions for post-employment benefits | 7,592 | 11,781 |
| Provisions for deferred taxes | 1,548 | 1,040 |
| Other long-term liabilities and provisions | 1,105 | 1,445 |
| Non-current liabilities | 31,657 | 29,738 |
| Trade payables | 11,847 | 9,881 |
| Short-term financial liabilities | 4,270 | 3,864 |
| Other short-term liabilities and provisions | 12,693 | 10,780 |
| Current liabilities | 28,810 | 24,525 |
| Total equity and liabilities | 115,723 | 99,628 |
Condensed consolidated statements of changes in shareholders' equity
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Opening balance 1 July/1 January | 51,575 | 39,508 | 45,364 | 35,712 |
| Net profit | 1,224 | 1,822 | 3,871 | 5,811 |
| Hyperinflation adjustments | 137 | 35 | 298 | 88 |
| Components of other comprehensive income | ||||
| Currency translation adjustments | 1,688 | 778 | 5,117 | 1,892 |
| Change in FV OCI assets and cash flow hedges | 10 | 76 | 28 | 93 |
| Remeasurements | 696 | -30 | 4,907 | 2,134 |
| Income taxes | -51 | 5 | -1,132 | -544 |
| Other | - | 7 | - | -16 |
| Transactions with shareholders | ||||
| Non-controlling interest | - | - | - | -1 |
| Cost for Performance Share Programmes, net | 21 | 16 | 47 | 19 |
| Dividends | -45 | -40 | -3,244 | -3,011 |
| Closing balance 30 September | 55,256 | 42,177 | 55,256 | 42,177 |
SKF Nine-month report 2022
Condensed consolidated statements of cash flow
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Operating activities: | ||||
| Operating profit | 1,929 | 2,588 | 6,463 | 8,165 |
| Non-cash items: | ||||
| Depreciation, amortization and impairment | 977 | 652 | 2,735 | 2,420 |
| Net loss/gain (-) on sales of PPE and businesses | -12 | -2 | 602 | -35 |
| Other non-cash items | 112 | -90 | 545 | -647 |
| Income taxes paid | -645 | -507 | -1,898 | -1,543 |
| Interest received | 55 | 32 | 59 | 28 |
| Interest paid | -80 | -59 | -178 | -151 |
| Other | -646 | -170 | -1,673 | -776 |
| Changes in working capital: | -422 | 70 | -4,365 | -3,444 |
| Inventories | 17 | -773 | -3,254 | -3,029 |
| Accounts receivable | 26 | 1,375 | -2,588 | -1,067 |
| Accounts payable | -510 | -511 | 1,138 | 111 |
| Other operating assets/liabilities | 45 | -21 | 339 | 541 |
| Net cash flow from operating activities | 1,268 | 2,514 | 2,290 | 4,017 |
| Investing activities: | ||||
| Payments for intangible assets, PPE, businesses and equity securities | -1,396 | -1,043 | -3,987 | -2,781 |
| Sales of PPE, businesses and equity securities | 65 | -1 | 17 | 41 |
| Net cash flow used in investing activities | -1,331 | -1,044 | -3,970 | -2,740 |
| Net cash flow after investments before financing | -63 | 1,470 | -1,680 | 1,277 |
| Financing activities: | ||||
| Proceeds from short- and long-term loans | 4,322 | 11 | 4,350 | 3,091 |
| Repayments of short- and long-term loans | -9 | 35 | -101 | -2,099 |
| Repayment leases | -163 | -179 | -549 | -535 |
| Cash dividends | -44 | -39 | -3,243 | -3,011 |
| Other financing items: | -198 | -169 | -198 | -169 |
| Investments in short-term financial assets | -107 | -1 | -202 | -30 |
| Sales of short-term financial assets | 18 | 6 | 79 | 92 |
| Net cash flow used in financing activities | 3,819 | -336 | 136 | -2,661 |
| Net cash flow | 3,756 | 1,134 | -1,544 | -1,384 |
| Change in cash and cash equivalents: | ||||
| Cash and cash equivalents at 1 July/1 January | 8,167 | 11,756 | 13,219 | 14,050 |
| Cash effect excl. acquired/sold businesses | 3,756 | 1,132 | -1,405 | -1,386 |
| Cash effect of acquired/sold businesses | - | 2 | -139 | 2 |
| Exchange rate effect | 52 | 149 | 300 | 373 |
| Cash and cash equivalents at 30 September | 11,975 | 13,039 | 11,975 | 13,039 |
| Change in Net debt | Closing balance 30 September 2022 | Other non-cash changes | Acquired/sold businesses | Cash changes |
| --- | --- | --- | --- | --- |
| Loans, long- and short-term | 21,391 | -35 | 8 | 4,249 |
| Post-employment benefits, net | 7,514 | -4,563 | - | -540 |
| Lease liabilities | 3,054 | 531 | -44 | -549 |
| Financial assets, others | -543 | 3 | - | -152 |
| Cash and cash equivalents | -11,975 | - | 139 | 1,405 |
| Net debt | 19,441 | -4,064 | 103 | 4,413 |
SKF Nine-month report 2022
Condensed consolidated financial information
MSEK unless otherwise stated
| Q4/20 | Q1/21 | Q2/21 | Q3/21 | Q4/21 | Q1/22 | Q2/22 | Q3/22 | |
|---|---|---|---|---|---|---|---|---|
| Net sales | 19,572 | 19,865 | 20,735 | 20,146 | 20,986 | 22,942 | 23,655 | 24,975 |
| Cost of goods sold | -14,118 | -14,124 | -14,441 | -14,582 | -15,310 | -16,453 | -17,777 | -19,223 |
| Gross profit | 5,454 | 5,741 | 6,294 | 5,564 | 5,676 | 6,489 | 5,878 | 5,752 |
| Gross margin, % | 27.9 | 28.9 | 30.4 | 27.6 | 27.0 | 28.3 | 24.9 | 23.0 |
| Research and development cost | -660 | -653 | -683 | -648 | -766 | -765 | -806 | -779 |
| Selling and administrative expenses | -2,659 | -2,423 | -2,706 | -2,385 | -2,736 | -2,779 | -3,094 | -2,831 |
| - as % of sales | 13.6 | 12.2 | 13.1 | 11.8 | 13.0 | 12.1 | 13.1 | 11.3 |
| Other, net | 75 | 34 | -27 | 57 | 420 | 8 | -397 | -213 |
| Operating profit | 2,210 | 2,699 | 2,878 | 2,588 | 2,594 | 2,953 | 1,581 | 1,929 |
| Operating margin, % | 11.3 | 13.6 | 13.9 | 12.8 | 12.4 | 12.9 | 6.7 | 7.7 |
| Adjusted operating profit | 2,582 | 2,789 | 3,118 | 2,672 | 2,260 | 3,058 | 2,473 | 2,131 |
| Adjusted operating margin, % | 13.2 | 14.0 | 15.0 | 13.3 | 10.8 | 13.3 | 10.5 | 8.5 |
| Financial net | -66 | -204 | -77 | -148 | -266 | -68 | -484 | -311 |
| Profit before taxes | 2,144 | 2,495 | 2,801 | 2,440 | 2,328 | 2,885 | 1,097 | 1,618 |
| Profit margin before taxes, % | 11.0 | 12.6 | 13.5 | 12.1 | 11.1 | 12.6 | 4.6 | 6.5 |
| Taxes | -541 | -646 | -661 | -618 | -559 | -824 | -511 | -394 |
| Net profit | 1,603 | 1,849 | 2,140 | 1,822 | 1,769 | 2,061 | 586 | 1,224 |
| Net profit attributable to | ||||||||
| Shareholders of AB SKF | 1,527 | 1,782 | 2,089 | 1,756 | 1,705 | 1,984 | 493 | 1,099 |
| Non-controlling interests | 76 | 67 | 51 | 66 | 64 | 77 | 93 | 125 |
Reconciliation of profit before taxes for the Group
| MSEK | Q4/20 | Q1/21 | Q2/21 | Q3/21 | Q4/21 | Q1/22 | Q2/22 | Q3/22 |
|---|---|---|---|---|---|---|---|---|
| Operating profit: | ||||||||
| Industrial1) | 1,706 | 2,201 | 2,319 | 2,384 | 2,386 | 2,696 | 1,689 | 1,724 |
| Automotive1) | 504 | 498 | 559 | 204 | 208 | 257 | -108 | 205 |
| Financial net | -66 | -204 | -77 | -148 | -266 | -68 | -484 | -311 |
| Profit before taxes for the Group | 2,144 | 2,495 | 2,801 | 2,440 | 2,328 | 2,885 | 1,097 | 1,618 |
1) Previously published figures for 2020, 2021 and Q1 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
Number of shares
| Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 | |
|---|---|---|---|---|
| Total number of shares: | 455,351,068 | 455,351,068 | 455,351,068 | 455,351,068 |
| - whereof A shares | 29,403,933 | 30,582,656 | 29,403,933 | 30,582,656 |
| - whereof B shares | 425,947,135 | 424,768,412 | 425,947,135 | 424,768,412 |
| Weighted average number of shares in: | ||||
| - basic earnings per share | 455,351,068 | 455,351,068 | 455,351,068 | 455,351,068 |
SKF Nine-month report 2022
Key figures
Definitions, see page 17
| Q4/20 | Q1/21 | Q2/21 | Q3/21 | Q4/21 | Q1/22 | Q2/22 | Q3/22 | |
|---|---|---|---|---|---|---|---|---|
| EBITDA, MSEK | 3,059 | 3,494 | 3,852 | 3,239 | 3,479 | 3,814 | 2,478 | 2,906 |
| EBITA, MSEK | 2,369 | 2,841 | 3,024 | 2,733 | 2,742 | 3,104 | 1,741 | 2,094 |
| Adjusted operating profit | 2,582 | 2,789 | 3,118 | 2,672 | 2,260 | 3,058 | 2,473 | 2,131 |
| Adjusted operating margin, % | 13.2 | 14.0 | 15.0 | 13.3 | 10.8 | 13.3 | 10.5 | 8.5 |
| Basic earnings per share, SEK | 3.36 | 3.91 | 4.59 | 3.86 | 3.74 | 4.36 | 1.08 | 2.41 |
| Adjusted earnings per share, SEK | 4.17 | 4.11 | 5.11 | 4.04 | 3.01 | 4.59 | 2.90 | 2.86 |
| Dividend per share, SEK | - | - | 6.50 | - | - | 7.00 | - | - |
| Net worth per share, SEK | 75 | 86 | 83 | 89 | 96 | 98 | 109 | 117 |
| Share price at the end of the period, SEK | 213.4 | 248.2 | 217.9 | 207.6 | 214.5 | 153.9 | 150.5 | 150.3 |
| NWC, % of 12 months rolling sales | 26.1 | 30.2 | 30.7 | 30.5 | 30.7 | 34.3 | 35.7 | 35.6 |
| ROCE for the 12-month period, % | 9.8 | 10.5 | 13.6 | 14.5 | 14.8 | 14.8 | 12.7 | 11.5 |
| ROE for the 12-month period, % | 12.1 | 13.7 | 18.4 | 19.3 | 18.8 | 18.3 | 13.8 | 11.7 |
| Gearing, % | 48.0 | 44.4 | 44.7 | 43.1 | 40.5 | 39.0 | 35.2 | 36.6 |
| Equity/assets ratio, % | 39.4 | 42.4 | 41.6 | 43.2 | 45.5 | 45.7 | 48.2 | 47.7 |
| Additions to property, plant and equipment, MSEK | 949 | 819 | 895 | 969 | 1,138 | 1,023 | 1,372 | 1,288 |
| Net debt/equity, % | 51.7 | 43.2 | 50.1 | 44.0 | 38.3 | 45.0 | 37.7 | 35.2 |
| Net debt, MSEK | 18,460 | 17,576 | 19,809 | 18,541 | 17,360 | 20,787 | 19,444 | 19,441 |
| Net debt/EBITDA | 1.8 | 1.6 | 1.5 | 1.4 | 1.2 | 1.4 | 1.5 | 1.5 |
| Registered number of employees | 40,963 | 41,151 | 41,433 | 42,139 | 42,602 | 42,763 | 42,602 | 42,885 |
SKF applies the guidelines issued by ESMA (European Securities and Markets Authority) on APMs (Alternative Performance Measures). These key figures are not defined or specified in IFRS but provide complementary information to investors and other stakeholders on the company's performance. The definition of each APM is presented at the end of the interim report. For the reconciliation of each APM against the most reconcilable line item in the financial statements, see investors.skf.com/en.
Segment information – quarterly figures
MSEK unless otherwise stated
| Industrial | Q4/20 | Q1/21 | Q2/21 | Q3/21 | Q4/21 | Q1/22 | Q2/22 | Q3/22 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 13,489 | 13,788 | 14,889 | 14,747 | 15,135 | 16,520 | 17,114 | 17,735 |
| Adjusted operating profit | 2,006 | 2,271 | 2,588 | 2,430 | 2,166 | 2,785 | 2,360 | 1,916 |
| Adjusted operating margin, % | 14.9 | 16.5 | 17.4 | 16.5 | 14.0 | 16.9 | 13.8 | 10.8 |
| Operating profit | 1,706 | 2,201 | 2,319 | 2,384 | 2,386 | 2,696 | 1,689 | 1,724 |
| Operating margin, % | 12.6 | 16.0 | 15.6 | 16.2 | 15.8 | 16.3 | 9.9 | 9.7 |
| Assets and liabilities, net | 38,681 | 42,430 | 42,489 | 42,417 | 44,127 | 46,385 | 48,974 | 51,768 |
| Registered number of employees | 34,590 | 34,890 | 35,124 | 35,797 | 36,136 | 36,342 | 36,556 | 36,929 |
| Automotive | Q4/20 | Q1/21 | Q2/21 | Q3/21 | Q4/21 | Q1/22 | Q2/22 | Q3/22 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Net sales | 6,083 | 6,077 | 5,846 | 5,399 | 5,851 | 6,422 | 6,541 | 7,240 |
| Adjusted operating profit | 576 | 518 | 530 | 242 | 144 | 273 | 113 | 215 |
| Adjusted operating margin, % | 9.5 | 8.5 | 9.1 | 4.5 | 2.5 | 4.2 | 1.7 | 3.0 |
| Operating profit | 504 | 498 | 559 | 204 | 208 | 257 | -108 | 205 |
| Operating margin, % | 8.3 | 8.2 | 9.6 | 3.8 | 3.6 | 4.0 | -1.7 | 2.8 |
| Assets and liabilities, net | 8,776 | 10,374 | 10,857 | 11,106 | 10,885 | 12,436 | 14,340 | 15,091 |
| Registered number of employees | 3,399 | 3,409 | 3,400 | 3,359 | 3,392 | 3,341 | 3,316 | 3,300 |
1) Previously published figures for 2020, 2021 and Q1 2022 have been restated to reflect change in responsibilities for factories and Group functions in accordance with new organizational structure.
SKF Nine-month report 2022
Parent Company condensed income statements
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Revenue | 1,077 | 2,168 | 4,731 | 5,185 |
| Cost of goods sold | -1,412 | -1,172 | -4,400 | -3,726 |
| General management and administrative expenses | -404 | -311 | -1,238 | -1,045 |
| Other operating income/expenses, net | -1 | -2 | 11 | -3 |
| Operating result | -740 | 683 | -896 | 411 |
| Financial income and expense, net | 944 | 207 | 1,103 | 433 |
| Profit before taxes | 204 | 890 | 207 | 844 |
| Taxes | 144 | -150 | 177 | -69 |
| Net profit | 348 | 740 | 384 | 775 |
Parent Company condensed statements of comprehensive income
| MSEK | Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 |
|---|---|---|---|---|
| Net profit | 348 | 740 | 384 | 775 |
| Items that may be reclassified to the income statement: | ||||
| Assets at fair value through other comprehensive income | 10 | 76 | 28 | 93 |
| Other comprehensive income, net of tax | 10 | 76 | 28 | 93 |
| Total comprehensive income | 358 | 816 | 412 | 868 |
Parent Company condensed balance sheets
| MSEK | September 2022 | December 2021 |
|---|---|---|
| Intangible assets | 1,287 | 1,371 |
| Investments in subsidiaries | 21,947 | 22,074 |
| Receivables from subsidiaries | 18,171 | 13,022 |
| Other non-current assets | 1,151 | 891 |
| Non-current assets | 42,556 | 37,358 |
| Receivables from subsidiaries | 5,302 | 6,958 |
| Other receivables | 371 | 273 |
| Current assets | 5,673 | 7,231 |
| Total assets | 48,229 | 44,589 |
| Shareholders' equity | 22,927 | 25,683 |
| Provisions | 597 | 445 |
| Non-current liabilities | 18,169 | 13,023 |
| Current liabilities | 6,536 | 5,438 |
| Total shareholders' equity, provisions and liabilities | 48,229 | 44,589 |
SKF Nine-month report 2022
Alternative performance measures and definitions
Adjusted operating profit
Operating profit excluding items affecting comparability.
Adjusted operating margin
Operating profit margin excluding items affecting comparability.
Adjusted earnings/loss per share in SEK
Basic earnings per share excluding items affecting comparability.
Basic earnings/loss per share in SEK (as defined by IFRS)
Profit/loss after taxes less non-controlling interests divided by the ordinary number of shares.
Currency impact on operating profit
The effects of both translation and transaction flows based on current assumptions and exchange rates compared to the corresponding period last year.
Debt
Loans and net provisions for post-employment benefits.
EBITA
(Earnings before interest, taxes and amortization). Operating profit before amortizations.
EBITDA
(Earnings before interest, taxes, depreciation and amortization)
Operating profit before depreciations, amortizations, and impairments.
Equity/assets ratio
Equity as a percentage of total assets.
Gearing
Debt as a percentage of the sum of debt and equity.
Items affecting comparability
Significant income/expenses that affect comparability between accounting periods. This includes, but is not limited to, restructuring costs, impairments and write-offs, currency exchange rate effects caused by devaluations and gains and losses on divestments of businesses.
Net debt
Debt less short-term financial assets excluding derivatives.
Net debt/EBITDA
Net debt, as a percentage of twelve months rolling EBITDA.
Net debt/equity
Net debt, as a percentage of equity.
Net worth per share (Equity per share)
Equity excluding non-controlling interests divided by the ordinary number of shares.
Net working capital as % of 12 month rolling sales (NWC)
Trade receivables plus inventory minus trade payables as a percentage of twelve months rolling net sales.
Operating margin
Operating profit/loss, as a percentage of net sales.
Operational performance
Operational performance includes the effects on operating profit related to changes in organic sales, changes in manufacturing volumes and manufacturing costs and changes in selling and administrative expenses.
Revenue growth
Sales excluding effects of currency and divested businesses.
Registered number of employees
Total number of employees included in SKF's payroll at the end of the period.
Return on capital employed (ROCE)
Operating profit/loss plus interest income, as a percentage of twelve months rolling average of total assets less the average of non-interest bearing liabilities.
Return on equity (ROE)
Profit/loss after taxes as a percentage of twelve months rolling average of equity.
SKF demand outlook
The demand outlook for SKF's products and services represents management's best estimate based on current information about the future demand from our customers. The demand outlook is the expected volume development in the markets where our customers operate.
For reconciliations of other Key Ratios, see investors.skf.com/en.
Cautionary statement
This report contains forward-looking statements that are based on the current expectations of the management of SKF. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors mentioned in SKF's latest annual report (available on investors.skf.com/en), including under the Administration Report; "Risk management" and in this report under "Risks and uncertainties in the business."
SKF Nine-month report 2022
Contamination or poor lubrication can lead to bearing failures. Seals play a crucial role in keeping contaminants out and reduce friction.
This is SKF
SKF is a leading global supplier of bearings, seals, lubrication systems and services, which include technical support, maintenance and reliability services, engineering consulting and training.
Quick facts
Founded 1907
Represented in more than 130 countries
Net sales in 2021: SEK 81,732 million
42,602 employees
15 technical centers
87 manufacturing sites
More than 17,000 distributors
AB SKF (publ)
Postal address: SE-415 50 Gothenburg, Sweden
Visiting address: Sven Wingquists Gata 2
tel. +46 31 337 10 00
www.skf.com
Company reg.no. 556007-3495
For further information, please contact:
INVESTOR RELATIONS: Patrik Stenberg, Director,
SKF Group Investor Relations and Mergers & Acquisitions
tel: 46 31 337 2104 mobile: 46 705 472 104
e-mail: [email protected]
PRESS: Carl Bjernstam, Corporate Communication
tel: 46 31 337 2517 mobile: 46 722 201 893
e-mail: [email protected]
Webcast
25 October at 09:00 (CEST), 08.00 (UK)
https://investors.skf.com/en
Sweden +46 10 884 80 16
UK / International +44 203 936 2999
Passcode: 156200
Calendar 2022
2 February 2023, Q4 report
The financial information in this press release is information which AB SKF is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was provided by the above contact persons for publication on 25 October 2022 at 08.00 CEST.
SKF is a registered trademark of the SKF Group. © SKF Group 2022 - The contents of this publication are the copyright of the publisher and may not be reproduced (even extracts) unless prior written permission is granted. Every care has been taken to ensure the accuracy of the information contained in this publication but no liability can be accepted for any loss or damage whether direct, indirect or consequential arising out of the use of the information contained herein. October 2022.