SKF interim report Q3 2024: Solid margin and strong cash flow in weak markets

PR Newswire10-30

GOTHENBURG, Sweden, Oct. 30, 2024 /PRNewswire/ -- Q3 2024Net sales: SEK 23,692 million (25,771)Organic growth: −4.4% (−0.6%), driven by lower market demand across most regions and industries.Adjusted ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2479415272?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/wgF3h2Wp9oI.6CVA0KW4pQ--~B/aD0xNjt3PTE2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/prnewswire.com/4d9436544eb947be3a5349db14774b4d","is_english":true,"pubTime":"2024-10-30 14:23","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2479415272","market":"us","top_or_hot":-1,"title":"SKF interim report Q3 2024: Solid margin and strong cash flow in weak markets","media":"PR Newswire","content":"<div>\n<p>GOTHENBURG, Sweden, Oct. 30, 2024 /PRNewswire/ --\nQ3 2024Net sales: SEK 23,692 million (25,771)Organic growth: −4.4% (−0.6%), driven by lower market demand across most regions and industries.Adjusted ...</p>\n\n<a href=\"https://finance.yahoo.com/news/skf-interim-report-q3-2024-062300996.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SKF interim report Q3 2024: Solid margin and strong cash flow in weak markets</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; 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 interim report Q3 2024: Solid margin and strong cash flow in weak markets\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-30 14:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/skf-interim-report-q3-2024-062300996.html><strong>PR Newswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>GOTHENBURG, Sweden, Oct. 30, 2024 /PRNewswire/ --\nQ3 2024Net sales: SEK 23,692 million (25,771)Organic growth: −4.4% (−0.6%), driven by lower market demand across most regions and industries.Adjusted ...</p>\n\n<a href=\"https://finance.yahoo.com/news/skf-interim-report-q3-2024-062300996.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":"SKF","symbol_name":"金融股指数ETF-ProShares两倍做空","start_time":0,"source_url":"https://finance.yahoo.com/news/skf-interim-report-q3-2024-062300996.html","article_id":"2479415272","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/wgF3h2Wp9oI.6CVA0KW4pQ--~B/aD0xNjt3PTE2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/prnewswire.com/4d9436544eb947be3a5349db14774b4d"],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/skf-interim-report-q3-2024-062300996.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2479415272","pubTimestamp":1730269380,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"\"We are pleased to report a continued solid margin development, representing a year-over-year improvement, despite declining volumes in the prevailing weak market environment and significant currency headwinds. We continue our strategic execution creating an even stronger SKF, with the initiated separation of our Automotive business as a key component.\". The weak market conditions prevailed globally during the third quarter, which also was reflected in multiple leading external macro indicators. Our organic sales declined by -4.4%, driven in particular by a weak demand in China and within Automotive, especially towards the end of the quarter. On the other hand, our sales in India and within Aerospace were solid.Our ability to uphold solid earnings also contributed to a strong cash flow from operations of SEK 3.6 billion.We continue to actively work with our portfolio to create a more focused and resilient SKF. I'm pleased that we have signed a contra","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SKF":"金融股指数ETF-ProShares两倍做空","BK4161":"工业机械","SKFRY":"AB SKF","CET":"Central Securities Corp"},"translate_title":"SKF 2024年第三季度中期报告：疲软市场中稳健的利润率和强劲的现金流","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CET":1,"SKF":1,"SKFRY":0.9},"content_text":"GOTHENBURG, Sweden, Oct. 30, 2024 /PRNewswire/ --\nQ3 2024Net sales: SEK 23,692 million (25,771)Organic growth: −4.4% (−0.6%), driven by lower market demand across most regions and industries.Adjusted operating profit: SEK 2,821 million (2,956). Continued strong price/mix contribution, driven by pricing actions and active portfolio management, as well as good cost control which largely offset the lower volumes and currency headwind.Adjusted operating margin: 11.9% (11.5%)Net cash flow from operations: SEK 3,576 million (3,435)\nRickard Gustafson, President and CEO:\n\"We are pleased to report a continued solid margin development, representing a year-over-year improvement, despite declining volumes in the prevailing weak market environment and significant currency headwinds. We continue our strategic execution creating an even stronger SKF, with the initiated separation of our Automotive business as a key component.\"\nSolid margin and strong cash flow\nThe weak market conditions prevailed globally during the third quarter, which also was reflected in multiple leading external macro indicators. Our organic sales declined by -4.4%, driven in particular by a weak demand in China and within Automotive, especially towards the end of the quarter. On the other hand, our sales in India and within Aerospace were solid.\nOur adjusted operating margin, on the other hand, improved year-over-year and came in just shy of 12%, another proof point of our ability to better adapt to volatile market conditions. Our cost management and robust price/mix actions have effectively offset lower sales volumes, a significant negative currency impact and ongoing regionalization of our manufacturing footprint. We continue to work hard on cost out activities to mitigate potential short-term impact on our cost efficiency from the current lower volume environment.\nOur ability to uphold solid earnings also contributed to a strong cash flow from operations of SEK 3.6 billion.\nUnlocking value by separating the Automotive business\nThe announced initiated separation of our Automotive segment follows our strategy to create a separate Automotive business. There is a strong strategic rationale for the separation since Industrial and Automotive are two business segments with different business logics. By establishing two fit-for-purpose independent companies, we expect to unlock long-term value and to accelerate profitable growth in both businesses.\nSince the announcement of the separation in mid-September, we have kick-started the separation planning and formed a dedicated project organization with the aim of listing the Automotive business in the first half of 2026. We intend to host a Capital Markets Day in Q4 2025 to share more information on the ambitions for both our Industrial and Automotive businesses.\nStrategic portfolio management to build a stronger SKF\nWe continue to actively work with our portfolio to create a more focused and resilient SKF. I'm pleased that we have signed a contract to divest our ring and seal operation in Hanover, USA, which is a non-strategic asset for our Aerospace business, representing annual sales of approximately SEK 700 million, for a total value of approximately SEK 2.3 billion. Aerospace will remain one of our largest customer industries, representing total annual sales of approximately SEK 6 billion, corresponding to 9% of industrial net sales after the divestment. We will continue to invest and strengthen our position in core Aerospace segments related to the aeroengine and aerostructure bearing offers to optimize our business potential.\nWith our strategy and decentralized operating model being well implemented, we are now in a position to also gradually accelerate profitable growth through smaller bolt-on acquisitions. As an example, the announced acquisition of John Sample Group is margin accretive and further strengthens our lubrication offering and position in the expansive India and Southeast Asia region.\nI would like to express my sincere gratitude to our employees for their contributions to achieving solid margin and strong cash flow, despite the weak demand environment, and a continued high pace in our strategic execution.\nOutlook\nWe expect to see continued market and geopolitical volatility, and the business is prepared to tackle different scenarios. For the fourth quarter of 2024, we expect a mid-single-digit organic sales decline, year-over-year. For the full year, we expect a mid-single-digit organic sales decline, compared to 2023.\"\n\n\n\n\nFinancial overview, MSEK unless otherwise stated \nQ3 2024 \nQ3 2023 \nJan-Sep 2024 \nJan-Sep 2023 \n\n\nNet sales \n23,692 \n25,771 \n73,997 \n79,443 \n\n\nOrganic growth, % \n−4.4 \n−0.6 \n−6.1 \n5.7 \n\n\nAdjusted operating profit \n2,821 \n2,956 \n9,448 \n10,049 \n\n\nAdjusted operating margin, % \n11.9 \n11.5 \n12.8 \n12.6 \n\n\nOperating profit \n2,526 \n2,567 \n8,008 \n9,159 \n\n\nOperating margin, % \n10.7 \n10.0 \n10.8 \n11.5 \n\n\nAdjusted profit before taxes \n2,536 \n2,582 \n8,515 \n8,855 \n\n\nProfit before taxes \n2,241 \n2,193 \n7,075 \n7,965 \n\n\nNet cash flow from operating activities \n3,576 \n3,435 \n7,509 \n9,846 \n\n\nBasic earnings per share \n3.40 \n3.64 \n10.91 \n12.67 \n\n\nAdjusted earnings per share \n4.05 \n4.49 \n14.07 \n14.62 \n\n\n\n\n\n\n\n\nNet sales, change y-o-y, %, Q3 \nOrganic1) \nStructure \nCurrency \nTotal \n\n\nSKF Group \n−4.4 \n0.0 \n−3.6 \n−8.0 \n\n\nIndustrial \n−4.6 \n0.0 \n−3.7 \n−8.3 \n\n\nAutomotive \n−4.0 \n0.0 \n−3.5 \n−7.5 \n\n\n1) Price, mix and volume \n\n\n\n\n\n\n\n\nNet sales, change y-o-y, %, Jan-Sep 2024 \nOrganic1) \nStructure \nCurrency \nTotal \n\n\nSKF Group \n−6.1 \n0.0 \n−0.8 \n−6.9 \n\n\nIndustrial \n−6.5 \n0.1 \n−0.9 \n−7.3 \n\n\nAutomotive \n−5.1 \n0.0 \n−0.8 \n−5.9 \n\n\n1) Price, mix and volume \n\n\n\n\n\n\n\n\nOrganic sales in local currencies, change y-o-y, %, Q3 \nEurope, Middle East & Africa \nThe Americas \nChina & Northeast Asia \nIndia & Southeast Asia \n\n\nSKF Group \n−5.2 \n−2.9 \n−8.7 \n2.9 \n\n\nIndustrial \n- \n+/- \n--- \n+ \n\n\nAutomotive \n--- \n- \n+/- \n+ \n\n\n\n\n\n\n\n\nOrganic sales in local currencies, change y-o-y, %, Jan-Sep 2024 \nEurope, Middle East & Africa \nThe Americas \nChina & Northeast Asia \nIndia & Southeast Asia \n\n\nSKF Group \n−5.5 \n−6.1 \n−10.8 \n1.5 \n\n\nIndustrial \n-- \n-- \n--- \n+/- \n\n\nAutomotive \n--- \n-- \n+/- \n++ \n\n\n\n\nOutlook and Guidance\nOutlook\n\nQ4 2024: We expect a mid-single-digit organic sales decline, year-over-year.\nFY 2024: We expect a mid-single-digit organic sales decline, year-over-year.\n\nGuidance Q4 2024\n\nCurrency impact on the operating profit is expected to be around SEK 250 million negative compared with the fourth quarter 2023, based on exchange rates per 30 September 2024.\n\nGuidance FY 2024\n\nTax level excluding effects related to divested businesses: around 26%.\nAdditions to property, plant and equipment: around SEK 5 billion.\n\nA webcast will be held on 30 October 2024 at 08:00 (CET):Sweden +46 (0)8 5051 0031UK / International +44 (0)207 107 0613https://investors.skf.com/en\nAktiebolaget SKF     (publ)\nThe financial information in this press release contains inside information that AB SKF is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below on 30 October 2024 at 07.00 CET.\nFor further information, please contact:PRESS: Carl Bjernstam, Head of Media Relationstel: 46 31-337 2517; mobile: 46 722-201 893; e-mail: carl.bjernstam@skf.comINVESTOR RELATIONS: Sophie Arnius, Head of Investor Relationstel: 46 31-337 8072; mobile: 46 705-908 072; e-mail: sophie.arnius@skf.com \nThis information was brought to you by Cision http://news.cision.com\nhttps://news.cision.com/skf/r/skf-interim-report-q3-2024--solid-margin-and-strong-cash-flow-in-weak-markets,c4058563\nThe following files are available for download:\n\n\n\n\nhttps://mb.cision.com/Main/637/4058563/3082842.pdf \nQ3_Eng_2024 \n\n\nhttps://news.cision.com/skf/i/shutterstock-154544165-png-highpreview-1278-2,c3347110 \nshutterstock 154544165 png highpreview 1278 2 \n\n\nhttps://news.cision.com/skf/i/skf-rickard-gustafson,c3347111 \nSKF Rickard Gustafson \n\n\n\n\n View original content:https://www.prnewswire.com/news-releases/skf-interim-report-q3-2024-solid-margin-and-strong-cash-flow-in-weak-markets-302291134.html\nSOURCE SKF","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/2479415272"}