Swedish bearings maker SKF said Wednesday that costs related to the planned spin-off of its automotive business hit its third-quarter cash flow.
Net cash flow from operating activities nearly halved to 1.84 billion Swedish kronor from 3.58 billion kronor a year earlier.
The company attributed the decline to higher separation costs and a build-up in working capital.
The spin-off was the main driver of 750 million kronor in costs that affected comparability in the quarter, SKF said.
The company is in the process of separating its automotive business, which it plans to list on Nasdaq Stockholm by mid-2026.
Despite the costs, SKF's adjusted operating margin rose to 12.3% from 11.9%, helped by 4% organic growth in its larger industrial division, which offset a 2% decline in the automotive unit.
"I’m pleased to conclude another quarter with a resilient and improved margin, driven by a strong commercial execution, despite challenging market conditions and negative currency effects," said President and CEO Rickard Gustafson.
For the fourth quarter, SKF expects organic sales to be relatively unchanged year-over-year.
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