Impact on SKF’s upcoming fourth quarter result 2013

Gothenburg, Sweden, 20 December 2013: SKF informs about impact on SKF’s upcoming
fourth quarter result 2013.

European Commission investigation

As previously advised, the European Commission is investigating possible
infringements of European competition law by certain bearing manufacturers
regarding the supply of bearings to the automotive manufacturing industry in
Europe. In the course of this proceeding, the Commission visited SKF offices in
Sweden and Germany in November 2011.

SKF has fully cooperated with the Commission and has undertaken its own
investigation. Based on this and SKF’s best estimate of a possible amount of a
fine, SKF will take a provision of SEK 3 billion in its fourth quarter result.
SKF believes that the Commission may impose a fine on SKF in 2014.

“I deeply regret that this has happened. Even if we believe it has not caused
any damage to our business partners, this should not have happened and is not at
all in line with the values we have in SKF. We have a clear code of conduct and
a well-established compliance program, which we operate throughout the Group,
but it did not prevent this from happening. We have since taken further steps to
intensify training and knowledge on this throughout the Group” says Tom
Johnstone, President and CEO. “We have previously advised that the likely fine
will materially affect our result and cash flow and have taken our best estimate
of a possible fine into the result.”

Kaydon acquisition impact
Kaydons sales figures for the fourth quarter are estimated to be around SEK 750
million. The operating results will be impacted by around SEK 250 million caused
by amortization of inventory revaluation to fair value and other acquisition
cost, which will result in an operating loss of around SEK 150 million.
Going forward Kaydon is expected in 2014 to operate around the Groups operating
margin target level, including amortization of assets identified in the purchase
price allocations.
Information regarding the preliminary purchase price allocation of the Kaydon
Corporation, see SKF’s website: investors.skf.com

Other one-time items
SKF expects to take additional one-time cost in the fourth quarter of around SEK
100 million, whereof around half of it refers to the ongoing restructuring
programme.


Sales development in the fourth quarter

Sales for the fourth quarter are broadly in line with the outlook given in the
nine-month results however the mix of sales has been unfavorable. This in
combination with a slightly lower manufacturing than planned is expected to have
a somewhat negative impact on the quarterly result compared to the previous
quarter.

The SKF Year-end report 2013 will be published on Tuesday, 28 January 2014.

Conference call
20 December at 09.00 (CET), 08.00 (UK)
SE: +46 (0)8 505 564 74
UK: +44 (0)203 364 5374

Aktiebolaget SKF
      (publ)

AB SKF is required to disclose the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.15 on 20 December 2013.
For further information, please contact:

Group Communication: Ingalill Östman, +46 31-337 3260; +46 706-973 260;
ingalill.ostman@skf.com
Investor Relations: Marita Björk, +46 31-337 1994; +46 705-181 994;
marita.bjork@skf.com
SKF is a leading global supplier of
bearings (http://www.skf.com/portal/skf/home/products?contentId=876709&lang=en),
seals (http://www.skf.com/portal/skf/home/products?contentId=238358&lang=en),
mechatronics (http://www.skf.com/portal/skf/home/products?contentId=447144&lang=
e 
n), lubrication systems (http://www.skf.com/portal/skf_lub?lang=en), and
services (http://www.skf.com/portal/skf_lub/home/services?contentId=867934&lang=
e 
n) which include technical support, maintenance and reliability services,
engineering consulting and training. SKF is represented in more than 130
countries and has around 15,000 distributor locations worldwide. Annual sales in
2012 were SEK 64,575 million and the number of employees was 46,775. www.skf.com

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