SKF AB S/ADR - SKFRY STOCK NEWS

SKF has appointed Annika Ölme as Chief Technology Officer and Senior Vice President of Technology Development, effective October 15, 2022. Annika, formerly of SAAB Radar Solutions, has extensive experience, including roles at General Electric's Arcam and previous positions at SKF from 2002 to 2017. CEO Rickard Gustafson expressed enthusiasm about her return, highlighting her role in enhancing technology development for both current and future applications involving rotating shafts.

SKF and Quaker Houghton (NYSE: KWR) have formed a collaboration to promote the circular use of industrial oil. This initiative aims to reduce CO₂ emissions and optimize resource utilization through SKF RecondOil's Double Separation Technology (DST). The partnership will introduce tailored solutions under fee- or performance-based contracts and initially launch in Europe, with plans for global expansion. Leaders from both companies emphasize the significance of improving factory ecosystems and enhancing customer experiences through sustainable practices.

SKF reported a strong second quarter with organic revenue growth exceeding 5%, driven by demand in high-growth segments like railway, automation, and agriculture. Net sales rose to SEK 23,655 million, though adjusted operating profit fell to SEK 2,473 million, reflecting rising costs due to external pressures, including the war in Ukraine. The company plans to maintain cost control and implement price increases. Looking ahead, SKF anticipates high single-digit growth in Q3 and a full-year organic growth of approximately 4-8%.

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.