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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. SKF Year-end report 2013 will be published on Tuesday, 28 January 2014. FAG HCS71916C.T.P4S.UL| FAG HCS71913E.T.P4S.UL | FAG HCS71914C.T.P4S.UL | FAG HCS71912E.T.P4S.UL | FAG HCS71911E.T.P4S.UL | FAG HCS7010C.T.P4S.UL | FAG HCS71906E.T.P4S.UL | FAG HCS7008C.T.P4S.UL | FAG HCS71906C.T.P4S.UL | FAG HCS71905E.T.P4S.UL |
