SKF divests coolant pumps operations, reports 8% organic sales growth in Q2
SWEDEN – SKF, a leading global designer and manufacturer of bearings, seals, and lubrication systems, has signed an agreement to divest Spandau Pumpen to industrial machinery manufacturer EBARA Pumps Europe S.p.A.
As stand alone brand in the SKF Group Spandau Pumpen is focused mechanical engineering, temperature control & cooling units, the printing & packaging industry and the mining industry.
SKF said the divestment is a strategic realignment and part of the company’s decision to focus on its core lubrication business such as automatic lubrication systems and components, lubricants, and lubrication tools.
Thomas Fröst, President, Independent & Emerging Business, at SKF, says: “We are pleased to sell Spandau Pumpen to EBARA CORPORATION, a dedicated pump manufacturer that will be able to continue to develop this business. The divestment is another example of the ongoing pruning of our portfolio, which is an important part of our strategy.”
The divestment is expected to close at the end of September 2023 and is deemed not material on SKF Group’s financials.
Net sales amount to
The company recently released its 2023 half-year report where net sales were SEK 27.1 billion (US2.3 billion), which according to SKF is a record high quarterly number.
Organic sales growth came in at 8%, representing the ninth consecutive quarter with an organic growth rate above 5%.
Growth was primarily driven strong demand in Europe and Asia with an organic growth of around 10%.
The company also enjoyed an enviable adjusted operating profit of SEK 3.6 billion (US$350 million). The adjusted operating margin was 13.3%, which is another step toward the target of 14%.
The main drivers behind the profitability uplift are the relentless pricing and portfolio management activities conducted in all business areas, the company said.
SKF noted that it is relentlessly working on improving the productivity and efficiency and plans to consolidate spherical roller bearing manufacturing in Europe, by proposing to move the current production from Luton, UK, to Poznan, Poland.
In addition, SKF also reported significant progress in our sustainability journey highlighting a solar supply agreement it signed which is equivalent to the electricity used by one third of our European operation in 2022.
Another example is decision to phase out fossil gas use in our own operations, backed by a SEK 3 billion investment frame over 6 years, to meet our energy and decarbonization goals by 2030.
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