SKF AB Class B

SKF B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 292.00	Dwhygkj	Sqtzrfpjd

SKF Earnings: Operating Margin Resilience in Face of Cyclically Weak Demand Conditions

Grant Slade

Jul 18, 2024

Weak demand conditions have persisted in 2024 year to date for narrow-moat SKF, with organic sales growth contracting 6.6% in the second quarter. Weakness in organic sales was relatively broad-based in the second quarter, proving pervasive across geographies and customer industries. Still, SKF delivered a resilient second-quarter EBIT margin of 13.0%, down just 30 basis points year on year as active management of the bearings portfolio and pricing initiatives helped to partially offset the negative impact posed to profit margins from the appreciable decline in sales volumes.

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