The bearings maker said it’s eyeing the sale of non-core Aerospace product lines, which include seals, rings and PEDs.
Gothenburg, Sweden-based bearings maker SKF reported its 2023 third quarter financial results on Oct. 27 while also stating its intentions to divest non-core product lines in its Aerospace division.
SKF posted 3Q total sales of $2.32 billion, up 3.2% year-over-year, with organic sales down 0.6%. Organic sales declined 3.6% in the Americas; increased 3.7% in EMEA; decreased 5.5% in China & Northeast Asia; and increased 4.6% in India & Southeast Asia.
By business group in 3Q:
- Industrial sales of $1.63 billion increased 2.0% year-over-year, with organic sales down 2.1%. Operating margin was 11.6%, with adjusted operating margin of 13.7%.
- Automotive sales of $689 increased 5.9% year-over-year, with organic sales up 3.1%. Operating margin was 6.1%, with identical adjusted operating margin.
SKF’s 3Q total operating profit of $231 million and margin of 10.0% topped the $173 million and 7.7% of a year earlier. 3Q adjusted operating margin was 11.5%.
The company posted a Q3 net profit of $156 million, topping the $110 million of a year earlier.
Looking forward, SKF expects a low single-digit organic sales decline for 4Q23, with a mid to low single-digit organic increase for the full year vs. 2022.
Aerospace Business Update
SKF shared that, following the completion of a strategic review of its Aerospace business, the company is further strengthening and investing in the unit’s core areas, but also exploring options to fully or partially exit non-core business lines.
SKF is refocusing its Aerospace business around core areas related to aeroengine and aerostructure bearings, the company said. The non-core product lines are in the company’s Hanover and Elgin facilities, which include mechanical seals, rings and precision elastomeric devices (PEDs). These businesses represent annual sales of about $90 million, SKF stated.
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Mike Hockett
Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett earned a degree in print journalism from the University of Wisconsin-Eau Claire and works from his home in Madison, Wisconsin. He can be contacted at mike@mdm.com.
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