SKF conducts strategic review of its Aerospace business By Reuters

(Reuters) -Swedish bearings maker SKF said on Thursday it was reviewing the ownership of its aerospace business, confirming earlier reports.

“CEO Rickard Gustafson will announce that the group is conducting a strategic review of its Aerospace business, considering ongoing consolidation in the industry,” SKF said in a statement ahead of its capital markets day presentation on Thursday.

Aerospace accounts for around 5% of group sales, according to brokerage Berenberg.

Berenberg in a note suggested German rival Schaeffler might be interested in buying the business, as might other players within aerospace such as Timken and MinebeaMitsumi.

Bloomberg News reported on Tuesday that a potential sale had been prompted by calls for a change from SKF’s second biggest shareholder, activist investor Cevian Capital.

SKF on Thursday also confirmed its long-term financial targets as well as the group’s outlook for the October-December quarter.

“Looking into the fourth quarter of 2022 we expect organic sales growth of about 10% and, as a result, we expect organic growth for the full year to end in the upper part of our previously guided range of about 4-8%,” SKF said in its statement.