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SKF

SKF to establish Russian presence

Bearing company SKF has announced that it is to build a factory in Russia in order to make taper bearing units to supply to the growing Russian railway market. The factory will also have a channel dedicated to reconditioning of bearings.

SKF said it would invest 235 million kronor in the new plant, which is expected to create employment for around 150 people.

Although the group has not yet decided on an exact location for the site, it is expected to be in the Moscow area.

“This new investment will further strengthen SKF’s position as world leader in the railway industry,” SKF said in a statement.

Construction will start in September 2008, with the new factory expected to be operational by April 2010.

“SKF has a leading position in supplying taper bearing units to the railway industry all over the world and intends to get an important part of the Russian market,” said SKF.

SKF

Industry bails on Swedish ball bearings

Swedish ball bearing manufacturer SKF announced Tuesday a decrease of its net profit in the third quarter, amid lower-than-expected sales in its industrial business.

Industry bails on Swedish ball bearings

The company’s earnings shrank by 8 percent to 1.123 billion kronor ($173 million) compared to the same period of 2012, and fell short of the 1.27 billion kronor profit expected by analysts interviewed by Dow Jones Newswires.

This is the eighth consecutive quarter with a year-on-year decline in earnings.

“Our cash flow was good in the quarter,” chief executive Tom Johnston said. “We continued to improve our operating margin sequentially despite the negative mix and a stronger than expected currency headwind.”

“SKF sales in the quarter developed well within our automotive business but were somewhat lower than expected in our industrial business.”

Sales climbed by 1 percent to 15.623 billion kronor.

“We see a positive development in our aerospace, renewable energy and railway businesses. However, we see some lack of traction in a number of other industrial markets,” Johnston added.

SKF expects to “rapidly” close the $1.25 billion acquisition of American bearing manufacturer Kaydon Corporation, which it announced last September.

AFP/The Local/og

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