Aktiebolaget SKF Business Report FY2009

Business Highlights

Financial Overview

(in million Kronor)
  FY2009 FY2008 Rate of change(%) Factors
Net Sales 56,227 63,361 (11.3) -
Operating profit 3,203 7,710 (58.5) -
Net Sales 16,051 17,886 (10.3) -
Operating profit (809) 546 - -

Business Overview
In 2009, the Automotive Division focused on:
-significantly adapting cost and capacity structure to lower demand levels
-restructuring and cost reduction
-increasing manufacturing efficiency and competitiveness
-intensifying development of energy-efficient products and solutions
-increasing sales of value-adding solutions to improve the price/product mix
-increasing sales in emerging markets, mainly Asia and Latin America
-developing cooperation with automotive solution providers

-Followings are major contracts from a press release in 2009.

Maker/ Model Products
Fuwa Seal for the trailer axle, Tapered roller bearing
Venturi Fetish Bearing for the electric motor speed reducer, Wheel hub
Daimler Valve stem seal
Scania High-pressure valve stem seal
Tata Nano Belt tensioner unit
Brilliance Auto Rear wheel bearing
Volvo XC60 Bearing
Volvo S80 limousine Bearing
GM Brazil Clutch bearing unit for a gearbox


-The Company announced that it has completed the acquisition of shares by purchasing the remaining 49% stake from Macrotech Polyseal Inc. for 25 million USD. Following the transaction, Macrotech Polyseal is now called SKF Polyseal Inc. The company is based in Salt Lake City, Utah, USA, and had the turnover of 39 million USD in 2008. (From a press release on May 19, 2009)

Recent Developments Outside Sweden

-The construction of a factory in Haridwar, northern India, is proceeding on schedule and the factory will be put into operation in the first quarter of 2010.
-Production capacity was also increased both in Guadalajara and Puebla, Mexico, and in Shanghai, China.


-In the first quarter of 2009, the closure of the production facility in Glasgow, USA, was completed, six months ahead of schedule.
-The US automotive seals manufacturing in Elgin and Seneca was transferred to Guadalajara, Mexico.
-The transfer of production of small tapered roller bearings from Schweinfurt, Germany, to plants in Brazil, India and China was completed and the tapered rollers manufacturing in Schweinfurt, was transferred to Lutsk, Ukraine.
-A decision was made to close down the manufacturing facility for ball bearings in Fontenay-le-Comte, France, and move production to other plants within the Group, the closure was finalized in November.
-A decision was also made to restructure the seal manufacturing capacity in Europe, including a capacity reduction in Leverkusen, Germany. Manufacturing capacity increased in Bulgaria and the Ukraine as a result of these restructuring activities.


R&D Expenditure

(in million Kronor)
  FY2009 FY2008 FY2007
Overall 1,217 1,175 900
Patents (No. of first filings) 218 179 186

Technological Alliance

-The Company and UK-based Ricardo have signed an agreement to develop energy efficient solutions. Ricardo is a provider of engineering and consulting services to the automotive industry. Through the cooperation both companies will be able to offer a "one-stop-shop" partner providing research, product and application development, manufacturing and supply. The initial focus will be on increasing the efficiency of transmission and engine technology based on contacts with automotive OEMs. (From a press release on Nov. 13, 2009)

Investment Activities

Capital Expenditure

(in million Kronor)
  FY2009 FY2008 FY2007
Overall 1,975 2,531 1,907