SKF AB S/ADR - SKFRY STOCK NEWS

SKF hosted its Capital Markets Day in London on December 8, 2022, presenting strategic updates to investors and analysts. CEO Rickard Gustafson outlined the Group's focus areas, highlighting the Industrial business developments in the Americas and India, as well as the global Automotive sector. A strategic review of the Aerospace business was also announced due to industry consolidation. For Q4 2022, SKF expects organic sales growth of approximately 10%, anticipating full-year growth to be in the upper range of 4-8% as previously guided.

SKF has partnered with Castrol to enhance lubrication processes through 'Oil as a Service'. This collaboration integrates SKF's RecondOil Double Separation Technology with Castrol's lubricants, promoting the circular use of lubricant fluids. This partnership aims to reduce oil consumption and waste, while improving machine efficiency in the metalworking industry. Both companies are committed to sustainability, with fee- and performance-based contracts to be offered initially. SKF's revenue in 2020 was SEK 74,852 million, employing over 40,000 staff worldwide.

SKF has announced investments totaling SEK 1.25 billion to enhance manufacturing and engineering capabilities in Asia, focusing on China, India, and Southeast Asia. In China, the company is consolidating its operations from 16 to 9 sites, with a SEK 1 billion investment in the Dalian factory to improve service for large and medium-size bearings. Additionally, SEK 250 million will be allocated for local manufacturing in India and Southeast Asia, expanding their deep-groove ball bearing offerings.

SKF has completed its acquisition of Tenute Srl, a company specializing in sealing solutions for industrial applications and employing approximately 50 staff. This acquisition aims to enhance SKF's Seals business, particularly benefiting customers in heavy and process industries. Peter Thorpman, Director of SKF Seals, emphasized the strategic importance of this integration for strengthening their market position.

SKF has strengthened its strategic partnership with NIO, becoming a preferred supplier of ceramic ball bearings to support NIO's product development and global expansion. The collaboration highlights SKF's technical expertise and its role in the electric vehicle (EV) market. NIO aims to enhance its global presence, having delivered over 90,000 vehicles in 2021 and expanding into European markets in 2022. SKF's ceramic bearings are crucial for EV drivetrains, reflecting the companies' commitment to innovation and user experience in the competitive EV industry.

SKF will announce its nine-month results for 2022 on October 25, 2022, at approximately 08:00 CET. Investors, analysts, and media can attend a live webcast starting at 09:00 CET. To participate, they should join at least 10 minutes prior using the provided link. All relevant information will be accessible on the company's Investor Relations website. For media inquiries, bookings for interviews with the President and CEO, or CFO can be arranged post-webcast.

SKF's magnetic bearings, capable of rotating at up to 50,000 rpm, are advancing sustainability in industrial applications, particularly in compressors. Selected by Tamturbo, a Finnish cleantech firm, these bearings facilitate high-speed turbo motors in air compressors, replacing traditional oil-based screw compressors. The new technology promises lower CO₂ emissions, extended service intervals, and reduced ownership costs. SKF emphasizes its commitment to helping industries transition towards sustainable operations, enhancing efficiency and reliability for Tamturbo's customers.

SKF is set to hold its Capital Markets Day on December 8, 2022, from 11:00 to 16:00 at the Science Museum in London. The event aims to update investors, analysts, and financial media on SKF's strategic progress and financial performance. Registration is available at their investor relations site. A complete agenda and list of presenters will be shared with participants in the autumn. Those interested in attending and interviewing speakers should contact Carl Bjernstam for arrangements.

SKF has launched its second Green Bond, raising EUR 400 million to finance green projects under its Green Finance Framework. This Bond supports SKF's sustainability goals, including achieving net-zero greenhouse gas emissions in its operations by 2030. Demand was high, with the bond being oversubscribed more than six times. The funds will be allocated to identify significant projects focused on cleantech and increased energy efficiency. This initiative reflects SKF's long-standing commitment to sustainability since it first issued a Green Bond in 2019.