SKF Faces Weaker Second-Quarter Growth and Currency Headwind -- Market Talk

Dow Jones
2025/06/18

1216 GMT - SKF's second-quarter organic revenue could fall 3.7% on year, consistent with the company's guidance of somewhat weaker growth, Jefferies analyst Rizk Maidi writes. Customer sentiment shifted in March and deteriorated further following President Trump's tariff announcements, prompting a more cautious wait-and-see approach. By division, Jefferies expects industrial demand to remain broadly flat quarter-on-quarter, translating to a 3.5% fall on year. Automotive production probably softened sequentially, equating to a 4.2% organic revenue drop on year. The contribution from price increases appears limited. Jefferies thinks the company faces a 7.6% currency drag, equating to 2 billion Swedish kronor in revenue impact. It models an adjusted margin of 12.7% in the quarter. Its adjusted EBIT estimate is around 4% ahead of consensus. Shares rise 0.5%.(dominic.chopping@wsj.com)

 

(END) Dow Jones Newswires

June 18, 2025 08:17 ET (12:17 GMT)

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