SKFRY - SKF Sees Industrial Revenue Contract On Broad Weakness
There are a lot of reports left for the second quarter reporting cycle, but so far it’s looking like my call for weakening industrial markets (particularly short-cycle markets) is playing out, as several high-quality industrial players are seeing weakness, including SKF (SKFRY). Although management tried to strike a positive tone, industrial organic sales slipped into contraction, the weakness is broad-based across its markets, and the company hasn’t been working down its inventory.
Even with the prospects of a U.S. rate cut increasing, I’m concerned about how industrial stocks like Atlas Copco (ATLKY