Bearings maker SKF's Q3 profit falls slightly less than expected (updated)
29/10/2025 06:41
SKF expects demand to stay weak in Q4 due to market uncertainty Compensated for tariffs in Q3 mostly through price rises Q3 adjusted operating profit falls 2%, shares drop 4% Recasts with share price fall, adds CEO comments in paragraph 2,4,6 By Greta Rosen Fondahn STOCKHOLM, Oct 29 (Reuters) - Swedish industrial bearings maker SKF SKFb.ST said it expects weak short-term demand due to market uncertainty, denting its shares on Wednesday, as it posted a third-quarter profit drop. Although demand had stabilised at a low level, customers remained hesitant due to tariffs, geopolitical developments and global conflicts, SKF CEO Rickard Gustafson told Reuters. SKF is a bellwether of the global manufacturing sector as its customers span a wide range of products ranging from vehicles and wind turbines to industrial tools. "If we can get a bit more calm and stability, then I think we will see demand return," Gustafson said in an interview. SKF said it had largely compensated for higher tariffs in the third quarter and expected to do so again this quarter, mainly through price hikes. Gustafson said SKF, which last year generated a fifth of its turnover in the U.S., was looking into relocating some production in the face of tariffs. Most of SKF's goods for the U.S. market are produced in the country. ORGANIC SALES INCREASE 2% Third-quarter adjusted operating profit fell 2% year-on-year to 2.76 billion crowns ($293 million), against a mean forecast 2.72 billion in a poll of analysts provided by SKF, on like-for-like sales growth of 2% driven by its industrial division. SKF said it expects market demand to remain at similar levels as in the third quarter in the fourth and that organic sales would be relatively unchanged year on year. In the fourth quarter of 2024, SKF's turnover was 24.7 billion crowns. Shares in SKF were 4% lower at 0850 GMT, taking a year-to-date rise to 17%. Analysts at Jefferies said in a note to clients the outlook lagged expectations. The rival to Germany's Schaeffler SHA0.DE has been trimming its portfolio, moving production closer to markets and to the most cost efficient sites. ($1 = 9.4155 Swedish crowns) (Reporting by Greta Rosen Fondahn, editing by Anna Ringstrom and Alexander Smith) ((Greta.RosenFondahn@thomsonreuters.com;))