Sweden's SKF meets Q4 profit view, sees somewhat stronger sales in Q1 (updated)
30/01/2026 06:45
Recasts with auto spin-off timing, adds shares and analyst comments in paragraphs 2, 5, details on market conditions and tariffs in paragraphs 4, 6 and 8; adds chart illustrating share performance By Vera Dvorakova and Agnieszka Olenska Jan 30 (Reuters) - Swedish industrial bearings maker SKF SKFb.ST met market expectations for quarterly core earnings on Friday, aided by pricing and lower costs, and signalled a delay in the automotive unit spin-off that has been in the plans since 2024. The company's shares fell nearly 6% by 1059 GMT, among the worst performers on Europe's benchmark Stoxx 600 index .STOXX, with two analysts pointing to the spin-off delay and low sales volumes in the quarter. SKF said it planned to list the automotive business on the Nasdaq stock exchange in Stockholm during the fourth quarter of the year, later than the mid-2026 it had indicated during its investor day in November. The market for the SKF's industrial business has bottomed out in Europe, but there are no significant signs of it bouncing back, CEO Rickard Gustafson said during a post-earnings call. SKF's net sales were 21.97 billion Swedish crowns ($2.48 billion) in the fourth quarter, flat on a like-for-like basis. It said the year-on-year performance should be "somewhat stronger" in the first quarter of 2026, implying a potential return to growth. Analysts from RBC said any growth would be largely down to an easier comparison period. European companies are navigating a downbeat demand picture in an uncertain macroeconomic environment, as the war in Ukraine nears its fourth year and U.S. President Donald Trump's foreign policy moves shake rules-based world order. SKF reported an adjusted operating profit of 2.59 billion crowns, matching analysts' forecast in a company-provided poll, with pricing and strong positive cost development balancing out the volume hit and adverse currency exchange rates. The company, whose customers span a wide range of products including vehicles and wind turbines, said it had largely offset U.S. tariff costs and planned to do so also in the first quarter. Tariffs aside, it does not expect large general price increases in 2026, Gustafson said. SKF also said it would propose board member Hans Stråberg as the next chair of the board. Stråberg has served on the board since 2018 and previously led Electrolux as president and CEO from 2002 to 2019. He is also the chairman of Atlas Copco, Roxtec and Anocca. ($1 = 8.8609 Swedish crowns) SKF's share price has largely recovered since US tariffs announcement https://reut.rs/4rq22d1 (Reporting by Vera Dvorakova and Agnieszka Olenska in Gdansk; Editing by Milla Nissi-Prussak) ((vera.dvorakova@thomsonreuters.com; agnieszka.olenska@thomsonreuters.com))