SKF’s CEO Mr. Danielson. Photo: Anna Hult
If you want to know how world are doing, ask SKF, it said. As the first global engineering companies in the Swedish report, the river is bearing giant got used to stand in the spotlight.
This time, created the six-month report a quake that got the entire engineering sector to tremble for. Negative organic growth, a uppstannat US and Chinese distributors that greatly reduce their stocks to not sit on unsold goods if their customers stop buying. Merchants pressed the sell button and SKF’s share plummeted sharply on the Stockholm Stock Exchange.
The relatively newly appointed CEO Mr. Danielson, for the day hit by a summer cold, was disappointed with the result.
– Of course I want us to grow, he says to SvD Business.
In the quarter that went was the North America and Asia who put spokes in the company’s growth.
– We have seen an uncertainty in the US based on a weakness, especially in mining, agriculture and oil and gas sectors. It is now starting to spread to companies that deliver to this segment. And besides, we have seen weaker export from the United States, something we believe will continue, says Mr. Danielson, who until year-end, CEO of Höganäs.
The second uncertainty geographical area is unsurprisingly China. This summer’s stock market slide, reduced car sales and stalled construction boom makes many nervous. What is crucial now is how the Chinese government chooses to act.
– It has happened in China is not a sign of strength. That is what worries. The government puts in efforts to stabilize is obvious, but the question is how successful they will be in the long term.
Something that does not has impacted SKF is Greece’s balance on the verge of bankruptcy.
– The uncertainty I see is with the macro economy to do. Greece affects us not directly because it is a very small industrial economy. But Greece can affect how the overall macro economy is doing.
In its outlook tells SKF manager that demand will be slightly lower in the third quarter, particularly in Europe and in the automotive segment. But he found it difficult to defend himself against analysts ‘bomb carpet of detailed questions about the August and September.
– I’m not Nostradamus. If you have a better picture of the world you should believe in it, said Mr. Danielson til an analyst with a tight detail regarding the prospects of the conference.
It is clear that analysts , and through them also the entire market, want to learn exactly how the third quarter to become. But Mr. Danielson is sure that he can not sit on all of the answers, which he with a little humor tried to explain to analysts who sat glued to the handset.
– We’re talking about the future and I can not see the details. What they ask of me, how do I know what will happen in the future, he says to SvD Business.
Today SKF reply was not what the Swedish market desired. The quarterly report created a bloodbath among the stock market where even Trelleborg, Volvo, Sandvik and Atlas Copco were heavy losers.
Now it’s uphill for the industry. On Thursday, the release engineering giant Atlas Copco CEO Ronnie Leten its report. The day after the follow Olof Faxander, Sandvik up with their quarterly numbers. Both are great in the mining segment in which SKF words flagged for a slowdown in North America.
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