AB SKF (publ) (SKFRY) Q4 2024 Earnings Call Transcript

2025-01-31 12:36:03 ET

AB SKF (publ) (SKFRY)

Q4 2024 Earnings Conference Call

January 31, 2024 02:00 AM ET

Company Participants

Sophie Arnius - IR

Rickard Gustafson - President and CEO

Carina van den Berg - Acting CFO

Conference Call Participants

Andre Kukhnin - UBS

Daniela Costa - Goldman Sachs

Andreas Koski - BNP Paribas

Ben Heelan - Bank of America

Tim Lee - Barclays

James Moore - Redburn

Johan Sjöberg - Kepler Cheuvreux

Anders Roslund - Pareto

Presentation

Sophie Arnius

Welcome to SKF's Earnings Call for the Fourth Quarter of 2024. We ended the year with solid margins, thanks to strong execution in a challenging market. My name is Sophie Arnius, and I'm heading up Investor Relations.

We will have a slightly different team than otherwise. Our CFO, Niclas Rosenlew, left by year-end. So, I'm very happy to have our CFO -- acting CFO, Carina van den Berg with us today. And we will also have CEO, Rickard Gustafson with us today.

After your presentations, there will be an opportunity to ask questions. [Operator Instructions]

So, with that, I'm happy to hand over to you, Rickard.

Rickard Gustafson

Thank you so much, Sophie and good morning everyone, and welcome to this earnings call. Well, with no further ado, let's just dig into it. And as you heard Sophie mentioned in her opening remarks, we are continuing to managing a rather volatile environment.

We are now reporting for the sixth consecutive quarter negative organic growth. This quarter, we're talking about some minus 3%, but we maintain our margin resilience. On a rolling 12-month basis, the margin is holding up pretty well also compared to 2023, as you can see on this chart.

And the drivers behind this are the same that we have talked about throughout the year. We are executing on the strategic intent that we have laid out. We are driving a lot of price/mix, we are driving our portfolio management activities, and we are continuing our regionalization efforts to ensure that we establish strong and robust value chains in those regions where we operate.

And clearly, in this quarter, we have also spent a lot of time and emphasis on the upcoming separation of our Industrial business and Automotive business. We're in an intense phase and we're working hard with all the planning and all the preparations for the work that is needed to make the kind of historical split of our business.

Clearly, this means that we also take the opportunity to review the future setup for both our Industrial business and our Automotive business to ensure that we create a platform for profitable growth going forward with two highly competitive business units....

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