Earnings call: SKF reports record sales and strategic shifts for 2023
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SKF, a Swedish engineering company, reported record sales exceeding SEK100 billion for the first time in its history during an earnings call. The company achieved organic growth of around 4% and an adjusted operating profit of SEK13 billion, resulting in an adjusted operating margin of 12.5%. Despite a decrease in demand during the fourth quarter, SKF delivered strong performance with net sales of SEK24 billion and an adjusted operating profit of nearly SEK3 billion. The company plans to propose a dividend increase to SEK7.5 per share. SKF anticipates a mid-single digit decline in organic sales for Q1 2024 and a low-single digit decline for the full year. Strategic initiatives for 2024 include supply chain optimization, portfolio management and restructuring, and sustainability leadership. The company expects a softer start in demand for 2024, with improvements expected in the second half of the year. SKF's performance in 2023 was marked by significant achievements and strategic realignments, demonstrating resilience in the face of market challenges.
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