Latest news with #SKFAB
Bloomberg
29-04-2025
- Business
- Bloomberg
Swedish Industrial Giants Hike Prices to Limit Tariff Fallout
Swedish industrial firms Atlas Copco AB and Alfa Laval AB both said they plan to increase prices in response to US tariffs and warned about macro uncertainty hurting demand, joining peers SKF AB and Sandvik AB. Industrial compressor maker Atlas Copco is working to limit the impact by implementing tariff surcharges, increasing local sourcing and reassessing supply routes, Chief Executive Officer Vagner Rego said on a call with analysts. Alfa Laval, which manufactures valves and pumps, has also implemented price increases accordingly, Chief Financial Officer Fredrik Ekstrom said on the earnings call.
Business Insider
27-04-2025
- Business
- Business Insider
SKF AB (0NWX) Receives a Buy from Kepler Capital
In a report released on April 25, Johan Sjoberg from Kepler Capital maintained a Buy rating on SKF AB (0NWX – Research Report), with a price target of SEK220.00. The company's shares closed last Friday at SEK184.70. Stay Ahead of the Market: Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. According to TipRanks, Sjoberg is an analyst with an average return of -4.6% and a 28.79% success rate. In addition to Kepler Capital , SKF AB also received a Buy from Redburn Atlantic's James Moore in a report issued on April 15. However, on April 24, Barclays downgraded SKF AB (LSE: 0NWX) to a Hold. The company has a one-year high of SEK241.70 and a one-year low of SEK157.90. Currently, SKF AB has an average volume of 800.8K.
Yahoo
26-04-2025
- Business
- Yahoo
SKF AB (SKFRY) Q1 2025 Earnings Call Highlights: Resilience Amidst Challenges and Strategic Progress
Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SKF AB (SKFRY) reported a strong operating margin of 13.5%, demonstrating resilience despite negative organic growth. The company achieved a positive organic growth of 2% in China and Northeast Asia, marking a turnaround after seven consecutive quarters of decline. SKF AB (SKFRY) is making significant progress in its strategic initiative to separate its automotive and industrial businesses, with important milestones achieved in organizational design and manufacturing footprint. The company is actively managing tariffs and trade challenges through a dedicated tariff command center and strategic price adjustments, minimizing financial impact in Q1. Innovation remains a key focus, with new products in the railway, mining, and industrial motor sectors enhancing customer value and sustainability. SKF AB (SKFRY) experienced a negative organic growth of 3.5% in Q1 2025, marking the seventh consecutive quarter of decline. Cash flow was weak in the quarter, impacted by higher working capital and currency headwinds. The company faces ongoing challenges in the automotive sector, with a soft demand for commercial vehicles and a margin of 5.2%, below the previous year. There is a risk of delays in the separation of the automotive and industrial businesses due to the complexity of the project, particularly in IT infrastructure. The geopolitical environment and tariffs pose uncertainties, with potential impacts on global demand and GDP that are difficult to predict. Warning! GuruFocus has detected 3 Warning Sign with SKFRY. Q: Can you provide insights on how tariffs have evolved since their announcement and if there was any pre-buying activity from customers? A: Richard Gustafson, CEO: The tariffs announced on April 2nd were not reflected in March's activities. We observed a strong end to the last quarter, partly due to the unknown magnitude of Liberation Day and an Easter effect. Post-Liberation Day, we've seen customers adopting a wait-and-see approach, impacting activity negatively. However, there hasn't been significant pre-buying or stockpiling to circumvent tariffs. Q: How should we think about free cash flow for the rest of the year, considering restructuring and potential inventory build-up due to tariffs? A: Susan Larson, CFO: We typically experience seasonal cash flow, which you can expect again. We anticipate extra cash in Q2 from the divestment of our bare EUR business. While restructuring costs will increase due to separation initiatives, we maintain strong underlying cash generation and finances. Q: Regarding price adjustments in the US, will you increase prices across the entire portfolio or selectively on imports? A: Richard Gustafson, CEO: It's a mix of both. Some assortments will see general price increases, while others will have specific surcharges. We are focusing on mitigating the impact of tariffs, especially on imports from China, which are limited but still present. Q: Can you provide more details on the right-sizing program and its potential impact on headcount? A: Richard Gustafson, CEO: We have approximately 13,000 staff globally, and we plan a sizable reduction. However, we are still assessing the impact by country, considering natural attrition versus real redundancy. We will provide more details in Q2. Q: What signs indicate markets are bottoming out, especially in the industrial sector? A: Richard Gustafson, CEO: In our EEA industrial business, the order book has shown a positive trajectory for several months, indicating potential market stabilization. Before Liberation Day, we observed high activity levels in North America, Europe, and India, with customer inquiries and new project discussions, suggesting a positive outlook. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
25-04-2025
- Business
- Bloomberg
SKF Works to Reroute Trade Flows and Plans ‘Sizable' Staff Cuts
Swedish industrial company SKF AB said it raised prices and is working to reroute some Chinese imports in response to tariffs, while also planning global job cuts. About 10% of what SKF sells in the US comes from China and those flows can be partly mitigated with price hikes or rerouting, Chief Executive Officer Rickard Gustafson said on a call with analysts.
Yahoo
25-04-2025
- Business
- Yahoo
SKF AB (SKFRY) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: Almost SEK100 billion for the full year, with a 5% negative organic growth. Operating Margin: Adjusted operating margin just north of 11% for the fourth quarter. Cash Flow: Robust cash flow of SEK3.3 billion in the fourth quarter. Dividend Proposal: Increase from SEK7.50 to SEK7.75. Fourth Quarter Net Sales: Just shy of SEK25 billion, representing a 3% negative organic growth. Americas Sales Growth: Positive net sales growth, with some timing effects. Industrial Business Operating Margin: Somewhat higher than 2023 despite negative growth. Automotive Business: Significant negative organic growth of 4% and adjusted operating margin of 2.6%. Regionalization Rate: Americas at 70%, Asia at 68%. FX Impact: Significant FX headwind of 0.9 percentage points affecting the margin. CapEx Guidance: SEK4.5 billion for the full year 2025. Warning! GuruFocus has detected 3 Warning Sign with SKFRY. Release Date: January 31, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SKF AB (SKFRY) maintained strong margins despite reporting negative organic growth for the sixth consecutive quarter. The company reported a robust cash generation of nearly SEK11 billion for the full year. SKF AB (SKFRY) announced a slight increase in the proposed dividend from SEK7.50 to SEK7.75. The company is making significant progress in its regionalization efforts, with notable increases in regionalization rates in the Americas and Asia. SKF AB (SKFRY) is focusing on strategic initiatives such as the separation of its industrial and automotive businesses to create two competitive business units. SKF AB (SKFRY) reported a negative organic growth of 3% for the fourth quarter and 5% for the full year. The automotive segment faced a challenging quarter with a significant negative organic growth of 4% and a weak adjusted operating margin of 2.6%. The company experienced significant FX headwinds, impacting the margin by 0.9 percentage points in the fourth quarter. There was a notable destocking in China, particularly affecting the industrial distribution segment. The company faced challenges in fully mitigating the volume impact from fixed cost absorption due to lower volumes, especially in the automotive sector. Q: Should we expect the separation process of SKF's industrial and automotive businesses to be largely done by the Capital Markets Day in November 2025? Will you provide midterm targets for the new businesses by then? A: The vast majority of the work to internally divide the two entities will be done by the end of 2025. We plan to clearly articulate the value creation plans for both businesses and share long-term financial targets. The work will continue into 2026. Q: Regarding the cost inflation and product mix impact, should we expect this to continue into 2025? A: We do not expect the product mix impact to continue in the coming quarters. The cost inflation was not due to any specific product standing out, and it should not have a material impact moving forward. Q: Can you provide insights into the pricing strategy for 2025, especially in light of cost versus price dynamics? A: We will continue to work on pricing and mix throughout the year, as we have proven in 2024. We aim to drive pricing wherever possible in the current environment. Q: How do you see the regional organic growth trends continuing into Q1 2025? A: In Europe, activity levels in the Nordics and Eastern Europe seem robust, but we don't see signs of improvement in Germany, Italy, and France. North America shows increasing activity levels, and strong growth is expected in India, Vietnam, and Indonesia. China remains uncertain despite government incentives. Q: What impact did portfolio pruning have on organic growth in 2024, and what should we expect for 2025? A: Portfolio pruning had a negative volume effect but was compensated by a positive price mix. We will continue this strategy, but the extent will be more limited in 2025 as most heavy lifting has been done. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
