SKF Nine-month report 2003

    SKF Nine-month report 2003
Continued good margin and a strong cash flow

SKF reports an operating margin of 8.4% for the third quarter 2003, a
continued increase in sales in local currency, a strong cash flow and a
positive price/mix development. To support the company's targets,
programmes have been initiated to reduce costs and tangible assets and
to increase efficiency.

The SKF Group reports a profit before taxes for the third quarter 2003
of MSEK 697 (877). The profit for the first nine months of 2003 was MSEK
2 314 (2 563).

Earnings per share for the third quarter were SEK 4.42 (5.11), and for
the first nine months, SEK 14.35 (15.33).

Net sales for the third quarter amounted to MSEK 10 059 (10 047) and for
the first nine months to MSEK 31 132 (31 765).

Total sales, calculated in local currencies, were unchanged in Europe in
the third quarter 2003 compared to the same period last year. In North
America sales were higher compared to last year, and in the Asian region
sales were significantly higher than a year ago.

A programme to restructure Ovako Steel has been initiated. In addition,
to further increase the efficiency in the Group, some other
restructuring activities have been identified. The cost estimated to
approximately MSEK 300 and the impairment of assets estimated to MSEK
200 will be charged to the fourth quarter 2003.

Outlook
The market demand for the Group's products and services is expected to
improve slightly during the fourth quarter, with demand in Europe
unchanged, higher in North America and significantly higher in Asia.

Manufacturing will be increased in line with market demand to maintain a
high service level.

Summary
- The operating profit for the third quarter was MSEK 841 (950).
  The figure for the first nine months was MSEK 2 730 (2 901).

- The operating margin for the SKF Group for the third quarter
  amounted to 8.4% (9.5), and for the first nine months to 8.8% (9.1).

- Cash flow after investments before financing for the third quarter
  was MSEK 982 (1 368), and for the first nine months MSEK 1 539 (2 085).

- The increase of 0.1% in net sales for the third quarter was
  attributable to: structure 0.2%, volume 4.2%, price/mix 1.2% and 
currency effect -5.5%. For the first nine months, the decrease of 2.0% 
was attributable to: structure 0.4%, volume 4.5%, price/mix 1.0% and currency 
effect -7.9%.

- Net profit for the third quarter amounted to MSEK 503 (582). Net
  profit for the first nine months was MSEK 1 634 (1 747).

Further information can be obtained from:
Lars G Malmer, Group Communication, tel: [phone],
e-mail: [e-mail]
Marita Bjork, Investor Relations, tel: [phone], 
e-mail: [e-mail]

Aktiebolaget SKF, SE-415 50 Goteborg, Sweden, company reg.no. 556007-3495,
tel: [phone], fax: [phone], www.skf.com