SKF AB (SKFRY) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic Resilience

GuruFocus.com10-31

Revenue: SEK23.7 billion, down from SEK25.8 billion last year. Organic Growth: Negative 4.4% organic sales decline. Adjusted Operating Margin: 11.9%, up from 11.5% last year. Cash Flow: SEK3.6 billion...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSKF AB (SKFRY) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic Resilience\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-31 15:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/skf-ab-skfry-q3-2024-070124358.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: SEK23.7 billion, down from SEK25.8 billion last year.\nOrganic Growth: Negative 4.4% organic sales decline.\nAdjusted Operating Margin: 11.9%, up from 11.5% last year.\nCash Flow: SEK3.6 billion...</p>\n\n<a href=\"https://finance.yahoo.com/news/skf-ab-skfry-q3-2024-070124358.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SKUFF","symbol_name":"Svenska Kullagerfabriken AB","start_time":0,"source_url":"https://finance.yahoo.com/news/skf-ab-skfry-q3-2024-070124358.html","article_id":"2479210597","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/coePBZc_7dYyXVXSojihpg--~B/aD0xNDA7dz0yMjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/b507d8e26cdf2a85e3c772cb4d2c825d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2479210597","pubTimestamp":1730358084,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: SEK23.7 billion, down from SEK25.8 billion last year.Adjusted Operating Margin: 11.9%, up from 11.5% last year.Cash Flow: SEK3.6 billion, up from SEK3.4 billion last year.Geographical Performance: Positive organic growth in India and Southeast Asia; negative growth in EMEA, Americas, and China.Currency Impact: Negative impact of 3.6% on sales.Outlook: Mid-single-digit organic sales decline expected for Q4.GuruFocus has detected 3 Warning Sign with SKFRY.SKF AB  maintained a strong adjusted operating margin of nearly 12% despite challenging market conditions.SKF AB  successfully executed strategic portfolio management, including bolt-on acquisitions and divestments, to strengthen its business.SKF AB  experienced a negative organic growth of 4%, primarily due to weaker demand in China and the automotive sector.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SKUFF":"Svenska Kullagerfabriken AB","SKFRY":"AB SKF","AB":"联博控股","SKF":"金融股指数ETF-ProShares两倍做空"},"translate_title":"SKF AB(SKFRY)2024年第三季度收益看涨期权亮点：以战略弹性应对挑战","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AB":1,"SKF":1,"SKFRY":1,"SKUFF":0.9},"content_text":"Revenue: SEK23.7 billion, down from SEK25.8 billion last year.\nOrganic Growth: Negative 4.4% organic sales decline.\nAdjusted Operating Margin: 11.9%, up from 11.5% last year.\nCash Flow: SEK3.6 billion, up from SEK3.4 billion last year.\nNet Debt: SEK9.3 billion, excluding pensions.\nIndustrial Business Margin: 15% adjusted operating margin.\nAutomotive Business Margin: Approximately 5% margin.\nGeographical Performance: Positive organic growth in India and Southeast Asia; negative growth in EMEA, Americas, and China.\nCurrency Impact: Negative impact of 3.6% on sales.\nOutlook: Mid-single-digit organic sales decline expected for Q4.\n\n\nWarning! GuruFocus has detected 3 Warning Sign with SKFRY.\n\nRelease Date: October 30, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nSKF AB (SKFRY) maintained a strong adjusted operating margin of nearly 12% despite challenging market conditions.\nThe company reported a robust cash flow of SEK3.6 billion, surpassing the same quarter last year.\nSKF AB (SKFRY) successfully executed strategic portfolio management, including bolt-on acquisitions and divestments, to strengthen its business.\nThe Industrial business achieved a 15% adjusted operating margin, an improvement from the previous year.\nThe company is progressing with its plan to separate its Industrial and Automotive businesses, aiming to list the Automotive business by the first half of 2026.\n\n Negative Points \n\nSKF AB (SKFRY) experienced a negative organic growth of 4%, primarily due to weaker demand in China and the automotive sector.\nThe company faced significant negative organic growth in China, with a decline of nearly 9%, impacting its overall performance.\nThere was a notable reduction in sales, from SEK25.8 billion last year to SEK23.7 billion this quarter.\nThe ongoing regionalization and manufacturing footprint optimization efforts are causing short-term inefficiencies and margin pressures.\nThe wind sector in China continues to be a challenge, with no significant improvement in demand.\n\n Q & A Highlights \nQ: Can you elaborate on the current macro environment and inventory levels at your customers, and how does this affect your pricing strategy? A: Niclas Rosenlew, CFO, explained that there are no significant changes in inventory levels, with some exceptions in China and the US. Pricing remains selective, focusing on value-based strategies and new product launches rather than broad-based increases.\nQ: Why did you choose to list the automotive business instead of considering a sale, as you did with the aerospace divestment? A: Rickard Gustafson, CEO, stated that the automotive business is deeply integrated with the industrial segment, making a listing more beneficial for value creation for employees, customers, and shareholders.\nQ: Was there any significant impact on operating profit and margin from production dynamics in the quarter? A: Niclas Rosenlew, CFO, noted that there were no significant impacts on profitability or margins from production dynamics, indicating normal fluctuations.\nQ: Can you provide insights into the profitability of the aerospace business you are divesting? A: Rickard Gustafson, CEO, mentioned that the divested aerospace business does not significantly differ in margin from the remaining aerospace operations, but specific margin details were not disclosed.\nQ: How is the wind sector in China affecting your business, and do you expect this trend to continue? A: Rickard Gustafson, CEO, explained that the wind sector in China has been challenging but is now stabilizing at a low level, with no further deterioration expected.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2479210597"}