SKF Year-end report 2003

SKF reports increased sales, measured in local currencies, compared to 2002 both
for the fourth quarter and for the full year. The operating margin, excluding
restructuring expenses and impairments of MSEK 487, reached 10.3% for the fourth
quarter and 9.2% for the full year. Cash flow was also strong both in the fourth
quarter and for the full year. SKF outperformed the market in a number of
customer segments during the year. The Board proposes a dividend increase of 25%
to SEK 10.00.

* The SKF Group reports a profit before taxes for the fourth quarter 2003 of
  MSEK 479 (979), and, excluding restructuring expenses and impairments, MSEK 966.
  The profit for the full year 2003 was MSEK 2 793 (3 542), and, excluding
  restructuring expenses and impairments in the fourth quarter, MSEK 3 280.

* Net profit for the fourth quarter 2003 was MSEK 405 (719). Net profit for
  the full year 2003 was MSEK 2 039 (2 466).

* Earnings per share for the fourth quarter 2003 were SEK 3.56 (6.34).
  Earnings per share for the full year 2003 were SEK 17.91 (21.67).

* Net sales for the fourth quarter 2003 was MSEK 10 245 (10 665). Net sales
  for the full year 2003 was MSEK 41 377 (42 430).

The operating profit for the fourth quarter 2003 was MSEK 569 (1 121) and,
excluding restructuring expenses and impairments, MSEK 1 056. The figure for the
full year 2003 was MSEK 3 299 (4 022) and, excluding restructuring expenses and
impairments in the fourth quarter, MSEK 3 786.

The operating margin for the fourth quarter 2003 was 5.6% (10.5), and, excluding
restructuring expenses and impairments, 10.3 %. The operating margin for the
full year 2003 was 8.0% (9.5), and, excluding restructuring expenses and
impairments in the fourth quarter, 9.2%.

Cash flow, after investments before financing, for the fourth quarter 2003 was
MSEK 812 (559),
and for the full year 2003 MSEK 2 351 (2 644).

The decrease in net sales for the fourth quarter 2003 compared to the fourth
quarter 2002 was attributable to: structure 0.3%, volume 3.1%, price/mix 0.1%
and currency effect -7.4%.
A comparison between the full years shows: structure 0.3% volume 4.2%, price/mix
0.7% and currency effect -7.7%.

Sales development
Total sales, calculated in local currencies, for the SKF Group were up 3.5% in
the fourth quarter and 5.2% for the full year. In Europe sales were unchanged in
the fourth quarter 2003 compared to the same period last year. For the full year
sales were slightly up. In North America sales were slightly lower for the
fourth quarter but unchanged for the full year. In Asia sales were significantly
higher for both the fourth quarter and the full year.

Outlook
The market demand for the Group's products and services is expected to improve
during the first quarter 2004. In Europe it is expected to be slightly higher,
while it will remain relatively flat in North America. Demand is expected to
increase significantly in both Asia and Latin America.

Manufacturing will, as is normal during the first half of the year, be increased
slightly ahead of market demand to ensure a good service level throughout the
summer period.

The Group's financial net for the fourth quarter 2003 was MSEK -90 (-142) and
for the full year 2003 MSEK -506 (-480). The lower level for the fourth quarter
was mainly due to foreign exchange gains. Interest-bearing loans at year-end
totalled MSEK 1 618 (2 409) while provisions for post-employment benefits
amounted to MSEK 7 885 (1. At year-end, the Group had financial assets of MSEK 6
814 (1, including short-term financial assets of MSEK 6 342 (5 530).

Additions to tangible assets for the fourth quarter 2003 totalled MSEK 520
(471), and for the full year MSEK 1 379 (1 442). Of the Group's total additions
to tangible assets, approximately MSEK 70 (76) were invested in measures to
improve the environment both internally and externally. Depreciation according
to plan was MSEK 1 505 (1 588).

In December 2003, SKF's equity to assets ratio was 43,1%, which is above the
average objective for this ratio which is 35%.

Three acquisitions were made in 2003: Scandrive Control AB, Rolling Stock Supply
& Service Pty Ltd. and BFW Coupling Services Ltd. The acquisitions price for the
three companies was MSEK 82 and total number of employees at acquisition 58.

Compared with the year 2002, exchange rates for the full year 2003, including
the effects of translation and transaction flows, had a negative effect on SKF's
operating profit of MSEK 790. In the fourth quarter 2003, the corresponding
negative effect was 150 MSEK. For the first quarter 2004 the estimated negative
effect is MSEK 120 and for the full year 2004, based on current assumptions and
exchange rates, is estimated to MSEK 500.

Expenditure for research and development was MSEK 750 (767), which was 1.8%
(1.8) of sales in 2003. Expenditure for research and development does not
include expenditure for IT solutions and customized solutions. The number of
first filings of patent applications was 151. The number in 2002 was 158.

The average number of employees for the year 2003 was 37 632  (38 609) and the
registered number of employees at the end of the year was 38 700 (39 739).

At the end of December 2003, the Group's inventories amounted 20.4% (21.2) of
annual sales. The return on capital employed for the 12-month period ended
December 31, 2003 was 14.2% (17.1). Return on equity was 13.6% (15.6).

During the year, the Group decided that all the factories within SKF should be
certified according to the health and safety management standard OHSAS 18001
before the end of 2005. Recent acquisitions will be handled according to a
separate programme.

SKF has applied the new accounting principles for 2003 "Employee benefits" and
"Segment reporting" in accordance with Swedish GAAP and IFRS.

Dividend policy and pension obligations
Based on the SKF Group's steady financial performance the Board of AB SKF has
decided to change the dividend policy and to fund certain pension obligations.

New dividend policy
SKF's dividend policy is based on the principle that the dividend should be
adapted to the trend of earnings and cash flow, taking into account the Group's
development potential and financial position. The Board of Directors' view is
that the dividend should amount to approximately one half of SKF's average net
profit calculated over a business cycle.

In the previous policy the dividend amounted to one third.




(1No comparable figure exist for 2002. "Employee benefits" was implemented as of
January 1, 2003.

Funding of pension obligations
The Board has decided to establish pension foundations to fund approximately
MSEK 3 000 of the pension obligations in Germany and Sweden, which are included
in the total provisions for
post-employment benefits of MSEK 7 885. This would mean that the financial
assets used for this purpose would be netted against the corresponding
provisions for post-employment benefits in the balance sheet. Funded obligations
would have a slightly positive effect on SKF's profitability and key ratios.

Restructuring expenses and impairments
During the fourth quarter 2003 the cost for restructuring expenses was MSEK 282
and impairments was MSEK 205, which amounted to MSEK 487. MSEK 421 against cost
of goods sold and MSEK 66 against selling and administrative expenses. They are
related to the closure of the factories in Franklin in USA (Automotive
Division), Thomery in France (Electrical Division) and the restructuring of
Ovako Steel. In addition to these major activities, some smaller activities were
also decided during the quarter. The details of how they affect the Divisions
result is shown in the different division reports.

Divisions
Comments on sales per geographical region are based on local currencies and
compared to the corresponding period for 2002.

Industrial Division
The operating result for the fourth quarter 2003 amounted to MSEK 373 (457),
resulting in an operating margin of 9.7% (11.6) on total sales (sales and
deliveries to external and internal customers). The operating result for the
full year 2003 amounted to MSEK 1 434 (1 625), resulting in an operating margin
of 9.3% (10.4) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 48 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
1 482 with an operating margin of 9.7%.

External sales for the fourth quarter 2003 amounted to MSEK 2 336 (2 397), a
decrease of 2.5%. External sales for the full year 2003 amounted to MSEK 9 714
(9 742), a decrease of  0.3%. Total sales for the fourth quarter were MSEK 3 849
(3 952) and for the full year MSEK 15 343 (15 650).

Sales in Europe were relatively unchanged for both the fourth quarter and full
year. In North America sales were higher for the fourth quarter and
significantly higher for the full year. Sales in Asia were significantly higher
for both the fourth quarter and the full year.

Growth was good and ahead of market development for SKF's sales to wind turbine
manufacturers during the year. SKF participated actively during the year in the
development of new megawatt turbines, mainly for the on- and offshore wind-
energy business. SKF was deeply involved with Vestas Wind Systems, the globally
leading manufacturer of wind turbines, in the early design stage of their new
wind turbines which improve cost efficiency per MWh.

During the year Scandrive Control AB, the leading Swedish manufacturer of
integrated servo gears for the printing industry, was acquired. SKF also
acquired Rolling Stock Supply & Service Pty Ltd., the leading railway bearing
service company in Australia.

Automotive Division
The operating result for the fourth quarter 2003 amounted to MSEK 3 (93),
resulting in an operating margin of 0.1% (2.6) on total sales. The result for
the full year 2003 amounted to MSEK 434 (523), resulting in an operating margin
of 3.0% (3.5) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 74 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
508 with an operating margin of 3.5%.

External sales for the fourth quarter 2003 amounted to MSEK 3 110 (3 228), a
decrease of 3.7%. External sales for the full year 2003 amounted to MSEK 13 108
(13 483), a decrease of 2.8%. Total sales for the fourth quarter were MSEK 3 451
(3 567) and for the full year MSEK 14 535 (14 930).

Sales to the car and light truck industry in both Europe and North America were
unchanged for the fourth quarter but higher for the full year.

Sales to the heavy truck industry in Europe were higher both in the fourth
quarter and for the full year. In North America, they were significantly higher
in the fourth quarter but significantly lower for the full year.

Sales to the vehicle service market in Europe were the same in the fourth
quarter but higher for the full year. Sales in North America were significantly
higher both in the fourth quarter and for the full year. In Asia, sales were the
same both in the fourth quarter and for the full year.

In the fast-growing market in China, SKF gained the wheel hub bearing units
business for the Ford Mondeo during the year in addition to supplying other
major manufacturers operating joint venture in China. To further support these
customers the CR China factory in Wuhu was inaugurated in November, 2003.

Through its subsidiary, Chicago Rawhide, SKF is a leading supplier of seals for
front crankshaft modules and has now introduced the fourth generation of PTFE
technology in this application. This helped SKF to win a major contract for both
front and rear crankshaft seals for a new diesel engine to be released in mid
2005.

Electrical Division
The operating result for the fourth quarter 2003 amounted to MSEK -46 (141),
resulting in an operating margin of  -2.8% (8.3) on total sales. The result for
the full year 2003 amounted to MSEK 215 (419), resulting in an operating margin
of 3.3% (6.2) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 134 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
349 with an operating margin of 5.4%.

External sales for the fourth quarter 2003 amounted to MSEK 445 (479), a
decrease of 7.1%. External sales for the full year 2003 amounted to MSEK 1 856
(1 935), a decrease of 4.1 %. Total sales for the fourth quarter were MSEK 1 615
(1 693) and for the full year MSEK 6 486 (6 708).

Sales in Europe were lower in the fourth quarter, but the same for the full
year. Sales in Asia were higher both in the fourth quarter and for the full
year.

Production of deep groove ball bearings was started early in the year in a new
SKF factory in Shanghai. The customer groups for these bearings are within the
electrical industry, where high quality is required to support Chinese local
demand as well as exports.

New business was gained in the growing application area of electric-power
steering systems, and also from the producers of electric motors for washing
machines such as ACC and Emerson Ceset.

Service Division
The operating result for the fourth quarter 2003 amounted to MSEK 431 (426),
resulting in an operating margin of 11.1% (10.5) on total sales. The result for
the full year 2003 amounted to MSEK 1 420 (1 418), resulting in an operating
margin of 9.7% (9.4) on total sales. The result has been affected by
restructuring expenses and impairments amounting to MSEK 45 in the fourth
quarter. The operating result for the full year, excluding these items, would
have been MSEK 1 465 with an operating margin of 10.0%.

External sales for the fourth quarter 2003 amounted to MSEK 3 508 (3 644), a
decrease of 3.7%. External sales for the full year 2003 amounted to MSEK 13 111
(13 501), a decrease of 2.9%. Total sales for the fourth quarter were MSEK 3 888
(4 061) and for the full year MSEK 14 643 (15 040).

Sales in Western Europe were slightly higher in the fourth quarter but unchanged
for the full year. Sales to Central and Eastern Europe and in Asia were
significantly higher both in the fourth quarter and for the full year. Sales in
North America were significantly lower in the fourth quarter and also lower for
the full year. Sales to Latin America were significantly higher both in the
fourth quarter and for the full year.

DEI, the Aberdeen-based branch of SKF Reliability Systems, was awarded a
contract for the provision of condition-monitoring services to Sigma 3, a joint
venture serving the North Sea interests of Shell Exploration and Production.

In 2003, the Division launched a global programme to address the changing market
needs and to strengthen its core Industrial Distribution business. Called "More
with SKF," the programme helps create a long-term sustainable business model and
development process for the SKF distributors.

SKF's e-business, based on endorsia.com and PTplace.com, increased in number of
order lines by nearly 30% in 2003 as global implementation continued to expand.

Three major supplier awards were received in the year in recognition of
outstanding logistic and technical support; from Siemens in Germany, from Mondi
in South Africa and from Cagill in Turkey.

Aero and Steel Division
The operating result for the fourth quarter 2003 amounted to MSEK -234 (60),
resulting in an operating margin of  -16.3% (3.9) on total sales. The result for
the full year 2003 amounted to MSEK -167 (213), resulting in an operating margin
of  -2.8% (3.4) on total sales. The result has been affected by restructuring
expenses and impairments amounting to MSEK 242 in the fourth quarter. The
operating result for the full year, excluding these items, would have been MSEK
75 with an operating margin of 1.2%.

External sales for the fourth quarter 2003 amounted to MSEK 837 (906), a
decrease of 7.6%. External sales for the full year 2003 amounted to MSEK 3 551
(3 741), a decrease of 5.1%. Total sales for the fourth quarter were MSEK 1 435
(1 558) and for the full year MSEK 6 016 (6 321).

Orders were received for prototypes for main shaft and gearbox bearings
involving the GE-Pratt Alliance and the Rolls-Royce engines for the A380
programme.

The helicopter business remained strong throughout the year. The new XLNT
bearing produced by Ampep Plc., a subsidiary in UK, has been widely accepted by
the helicopter industry. Ampep is the first company to successfully incorporate
ceramic coating into self-lubricating bearings.

Ovako Steel reported external sales of MSEK 1 660 (1 579). Total sales were MSEK
2 956 (2 963). The operating result was MSEK -307 (20). The result has been
affected by restructuring expenses and impairments amounting to MSEK 230 in the
fourth quarter. Excluding these items the operating result for the full year
would have been MSEK -77 with an operating margin of -2.6%.

The result in 2003 was adversely affected by a sharp increase in the cost of raw
materials, especially steel scrap, a continued weak demand for steel and a
negative currency effect. Price increases and surcharges were implemented during
the year in order to offset some of the steady increase in raw material prices.

Towards the end of the year, Ovako Steel launched the Ovahyd steel grade - a new
variant of the Ovatec(TM) air-hardening steel - for exacting hydraulic
applications.


Sale of shares
During the month of January 2004 SKF sold its 40% holding in Momentum, a Swedish
industrial distributor, for MSEK 88. The deal is expected to be concluded during
the first quarter of 2004 and the capital gain is estimated to MSEK 20.

Stock option programme
The Board decided that there will not be a stock option programme for 2004.

Previous Outlook statement
The Nine-month report 2003:
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.

Overhead presentation from SKF
An overhead presentation will be published on SKF's website at the following
address: www.skf.com/portal/skf/home/investors (choose Presentations)


Cautionary statement
This report contains forward-looking statements that are based on the current
expectations of the management of SKF. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have been correct.
Accordingly, results could differ materially from those implied in the forward-
looking statements as a result of, among other factors, changes in economic,
market and competitive conditions, changes in the regulatory environment and
other government actions, fluctuations in exchange rates and other factors
mentioned in SKF's latest 20-F report on file with the SEC (United States
Securities and Exchange Commission) under "Forward-Looking Statements" and "Risk
Factors".

Goteborg, January 27, 2004
Aktiebolaget SKF
(publ.)

Tom Johnstone
President and CEO

Enclosures:
Consolidated financial information
Consolidated balance sheets
Consolidated statements of cash flow
Consolidated financial information - yearly and quarterly comparisons (Group and
Divisions/Segments)

The consolidated financial statements of the Group and the Parent company of AB
SKF are prepared in accordance with accounting principles generally accepted in
Sweden. For further details see note 1 in the SKF Annual Report incl.
Sustainability Report 2002. As of January 1, 2003 SKF implemented RR 29
"Employee Benefits" and RR25 "Segment Reporting". For further information, see
SKF First quarter report 2003.

The report has not been audited by the Company's auditors.

The SKF Annual Report including Sustainability Report 2003 will be published on
Wednesday March 17, 2004 and will be available at the Company as of that day.

The SKF's report on the First-quarter result 2004 will be published on Tuesday,
April 20, 2004.

Further information can be obtained from:
Lars G Malmer, Group Communication, tel: +46-31-3371541, +46-705-371541, 
e-mail: lars.g.malmer@skf.com
Marita Bjork, Investor Relations, tel: +46-31-3371994, +46-705-181994, 
e-mail: marita.bjork@skf.com

Aktiebolaget SKF, SE-415 50 Goteborg, Sweden, company reg.no. 556007-3495,
tel: +46-31-3371000, fax: +46-31-3372832, http://www.skf.com/

                                                    Enclosure 1

CONSOLIDATED FINANCIAL INFORMATION (MSEK)

                                            Oct-Dec 2003   Oct-Dec 2002  Jan-Dec 2003   Jan-Dec 2002
                                                                                                    
Net sales                                         10 245         10 665        41 377         42 430
Cost of goods sold                                -8 029         -7 891       -32 022        -31 844
                                                                                                    
Gross profit                                       2 216          2 774         9 355         10 586
                                                                                                    
Selling and administrative expenses               -1 637         -1 732        -6 175         -6 636
Other operating income/expenses - net                -15             69           100             40
Result of associated companies                         5             10            19             32
                                                                                                    
Operating profit                                     569          1 121         3 299          4 022
                                                                                                    
Operating margin, %                                  5.6           10.5           8.0            9.5
                                                                                                    
Financial income and expenses - net                  -90           -142          -506           -480
                                                                                                    
Profit before taxes                                  479            979         2 793          3 542
                                                                                                    
Taxes                                                -62           -252          -698         -1 055
                                                                                                    
Profit after taxes                                   417            727         2 095          2 487
                                                                                                    
Minority interest                                    -12             -8           -56            -21
                                                                                                    
Net profit                                           405            719         2 039          2 466
                                                                                                    
                                                                                                    
                                                                                                    
Earnings per share after tax, SEK                   3.56           6.34         17.91          21.67
                                                                                                    
Diluted earnings per share after tax, SEK           3.56           6.34         17.91          21.67
                                                                                                    
Additions to tangible assets                         520            471         1 379          1 442
                                                                                                    
Number of employees registered                    38 700         39 739        38 700         39 739
                                                                                                    
Return on capital employed for the                                                                  
12-month period ended December 31, %                14.2           17.1          14.2           17.1



Number of shares*        December 31, 2003   December 31, 2002
                                                              
Total number of shares         113 837 767         113 837 767
 - whereof A-shares             21 372 327          32 383 377
 - whereof B-shares             92 465 440          81 454 390


*Since the decision was taken to insert a share conversion right of A-shares to
B-shares at SKFs Annual General Meeting on April 18, 2002, 27 884 005 A-shares
has been converted to B-shares.
                                                  Enclosure 2

CONSOLIDATED BALANCE SHEETS (MSEK)

                                                            December 2003   December 2002**
                                                                                           
Intangible assets                                                   1 588             1 855
                                                                                           
Tangible assets                                                    11 138            12 418
                                                                                           
Investments and long-term financial assets                            836             1 762
Total capital assets                                               13 562            16 035
                                                                                           
Inventories                                                         8 429             8 987
                                                                                           
Short-term assets                                                   7 993             8 125
                                                                                           
Short-term financial assets                                         6 342             5 530
Total short-term assets                                            22 764            22 642
                                                                                           
TOTAL ASSETS                                                       36 326            38 677
                                                                                           
                                                                                           
Shareholders' equity                                               15 164            16 365
                                                                                           
Provisions for pensions and other postretirement benefits               -             6 076
                                                                                           
Provisions for post-employment benefits*                            7 885                 -
                                                                                           
Provisions for deferred taxes                                       1 077             1 859
                                                                                           
Other provisions                                                    2 381             3 271
Total provisions                                                   11 343            11 206
                                                                                           
Long-term loans                                                     1 246             1 777
                                                                                           
Other long-term liabilities, including minority interest              611               635
Total long-term liabilities                                         1 857             2 412
                                                                                           
Short-term loans                                                      372               632
                                                                                           
Other short-term liabilities                                        7 590             8 062
Total short-term liabilities                                        7 962             8 694
                                                                                           
TOTAL EQUITY, PROVISIONS AND LIABILITIES                           36 326            38 677
                                                                                           
                                                                                           
                                                                                           
Changes in Shareholders' equity:                                                           
Opening balance January 1                                          16 365            16 224
Implementation of RR29/IAS19                                       -1 447                 -
Cash dividend                                                        -911              -683
Net profit                                                          2 039             2 466
Translation adjustments                                              -882            -1 642
Closing balance                                                    15 164            16 365


*)The balance sheet line "Provisions for post-employment benefits" complies with
RR29 "Employee benefits". For further
 details, see SKF First Quarter Report 2003.

**)Reclassifications were made to December 2002 balance sheet to present the
Groups deferred tax assets and liabilities
 as long term, being netted only on a long term basis. This reclassification
resulted in a decrease in total assets of 306.
                                                                     Enclosure 3

CONSOLIDATED STATEMENTS OF CASH FLOW (MSEK)

                                                       Oct-Dec 2003   Oct-Dec 2002  Jan-Dec 2003   Jan-Dec 2002
                                                                                                               
Profit before taxes                                             479            979         2 793          3 542
                                                                                                               
Depreciation amortization and impairment                        619            571         1 792          1 859
                                                                                                               
Net gain on sales of tangible assets and businesses                                                            
                                                                 46              8           -74            -80
                                                                                                               
Profit from associated companies                                 -5            -10           -19            -32
                                                                                                               
Taxes                                                          -113           -372          -930           -867
                                                                                                               
Changes in working capital                                      315           -112          -232            -82
                                                                                                               
Cash flow from operations                                     1 341          1 064         3 330          4 340
                                                                                                               
Investments in tangible assets and                                                                             
businesses                                                     -532           -544        -1 502         -2 024
                                                                                                               
Sales of tangible assets and businesses                           3             39           523            328
Cash flow after investments before                                                                             
financing                                                       812            559         2 351          2 644
                                                                                                               
Change in loans                                                 -13           -153          -492           -802
                                                                                                               
Change in pensions and other postretirement benefits                                                           
                                                                  -           -285             -           -539
                                                                                                               
Change in post-employment benefits                               -2              -            74              -
                                                                                                               
Change in long-term financial assets                              3            -66           -15           -167
                                                                                                               
Cash dividends, AB SKF shareholders                               -              -          -911           -683
                                                                                                               
Cash effect on short-term financial assets                      800             55         1 007            453



Change in short-term financial assets                                                      
                                       October 1 / January 1    5 590  5 572   5 530  5 387
                                       Cash effect                800     55   1 007    453
                                       Exchange rate effect       -48    -97    -195   -310
                                       December 31              6 342  5 530   6 342  5 530




Change in net interest-bearing liabilities                                                                
                                             Opening      Exchange   Change in      Acquired and   Closing
                                             balance   rate effect       items   sold businesses   balance
Loans, long- and short-term                    2 409          -301        -492                 2     1 618
Post-employment benefits                       8 220          -409          74                 -     7 885
Financial assets,   long-term                   -509            51         -15                 1      -472
         short-term                           -5 530           195      -1 007                 -    -6 342
Net interest-bearing liabilities               4 590          -464      -1 440                 3     2 689



                                                         Enclosure 4

CONSOLIDATED FINANCIAL INFORMATION - QUARTERLY COMPARISONS (GROUP)
(MSEK unless otherwise stated)

                       Full                                      Full                                      Full
                       year                                      year                                      year
                       2001    1/02     2/02    3/02     4/02    2002     1/03    2/03     3/03    4/03    2003
                                                                                                               
Net sales            43 370  10 665   11 053  10 047   10 665  42 430   10 541  10 532   10 059  10 245  41 377
Cost of goods sold      -33  -8 155   -8 359  -7 439   -7 891     -31   -8 023  -8 149   -7 821  -8 029     -32
                        105                                       844                                       022
Gross profit         10 265   2 510    2 694   2 608    2 774  10 586    2 518   2 383    2 238   2 216   9 355
                                                                                                               
Gross margin, %        23.7    23.5     24.4    26.0     26.0    24.9     23.9    22.6     22.2    21.6    22.6
                                                                                                               
Selling & admin.                                                                                               
expenses             -6 747  -1 642   -1 642  -1 620   -1 732  -6 636   -1 619  -1 543   -1 376  -1 637  -6 175
Other operating                                                                                                
income/                 104      34      -11     -52       69      40       40     100      -25     -15     100
/expenses - net
Result of                                                                                                      
associated               12       1        7      14       10      32        5       5        4       5      19
companies
Operating profit      3 634     903    1 048     950    1 121   4 022      944     945      841     569   3 299
                                                                                                               
Operating margin,       8.4     8.5      9.5     9.5     10.5     9.5      9.0     9.0      8.4     5.6     8.0
%
                                                                                                               
Financial income &                                                                                             
expenses - net         -514    -142     -123     -73     -142    -480     -142    -130     -144     -90    -506
Profit before         3 120     761      925     877      979   3 542      802     815      697     479   2 793
taxes
                                                                                                               
Profit margin                                                                                                  
before                  7.2     7.1      8.4     8.7      9.2     8.3      7.6     7.7      6.9     4.7     6.8
taxes, %
                                                                                                               
Taxes                  -909    -231     -284    -288     -252  -1 055     -225    -228     -183     -62    -698
Profit after taxes    2 211     530      641     589      727   2 487      577     587      514     417   2 095
                                                                                                               
                                                                                                               
Minority interest       -44      -1       -5      -7       -8     -21      -15     -18      -11     -12     -56
                                                                                                               
Net profit            2 167     529      636     582      719   2 466      562     569      503     405   2 039
                                                                                                               
                                                                                                               
Earnings per share                                                                                             
after tax, SEK        19.04    4.64     5.58    5.11     6.34   21.67     4.94    4.99     4.42    3.56   17.91
                                                                                                               
Return on capital                                                                                              
employed for the                                                                                               
12-month period, %     14.9    14.8     15.3    16.0     17.1    17.1     17.4    17.0     16.5    14.2    14.2
                                                                                                               
Equity/assets          41.1    41.2     40.0    41.9     43.4    43.4     41.2    40.9     42.3    43.1    43.1
ratio, %
                                                                                                               
Net worth per                                                                                                  
share,                  143     140      133     141      144     144      135     130      130     133     133
SEK
                                                                                                               
Additions to                                                                                                   
tangible              1 403     289      322     360      471   1 442      304     250      305     520   1 379
assets
                                                                                                               
Registered number                                                                                              
of employees         38 091  38 205   39 926  39 796   39 739  39 739   39 645  38 821   38 805  38 700  38 700
                                                                                                               

                                                       Enclosure 5

CONSOLIDATED FINANCIAL INFORMATION - QUARTERLY COMPARISONS (DIVISIONS/SEGMENTS)*
(MSEK unless otherwise stated)

                          Full                                     Full                                     Full
                          year                                     year                                     year
                          2001    1/02    2/02     3/02    4/02    2002    1/03    2/03    3/03    4/03     2003
Industrial Division                                                                                             
External Sales           9 966   2 493   2 513    2 339   2 397   9 742   2 536   2 519   2 323   2 336    9 714
Total sales             15 979   3 950   4 040    3 708   3 952  15 650   3 890   3 934   3 670   3 849   15 343
Operating result         1 665     376     432      360     457   1 625     370     352     339     373    1 434
Operating margin         10.4%    9.5%   10.7%     9.7%   11.6%   10.4%    9.5%    8.9%    9.2%    9.7%     9.3%
Operating assets and                                                                                            
liabilities, net         6 742   6 902   6 536    6 370   6 310   6 310   6 515   6 413   5 973   5 721    5 721
Registered number of                                                                                            
employees               10 525  10 753  10 647   10 644  10 639  10 639  10 661  10 720  10 679  10 607   10 607
                                                                                                                
                                                                                                                
Automotive Division                                                                                             
External Sales          13 436   3 457   3 604    3 194   3 228  13 483   3 441   3 415   3 142   3 110   13 108
Total sales             15 018   3 831   3 979    3 553   3 567  14 930   3 812   3 780   3 492   3 451   14 535
Operating result           407     123     197      110      93     523     174     178      79       3      434
Operating margin          2.7%    3.2%    5.0%     3.1%    2.6%    3.5%    4.6%    4.7%    2.3%    0.1%     3.0%
Operating assets and                                                                                            
liabilities, net         7 328   7 439   6 886    6 690   6 408   6 408   6 492   6 252   5 945   5 728    5 728
Registered number of                                                                                            
employees                9 994   9 993  10 012    9 995   9 943   9 943   9 912   9 551   9 548   9 410    9 410
                                                                                                                
                                                                                                                
Electrical Division                                                                                             
External Sales           1 948     493     504      459     479   1 935     502     459     450     445    1 856
Total sales              6 997   1 675   1 771    1 569   1 693   6 708   1 690   1 621   1 560   1 615    6 486
Operating result           303      73     109       96     141     419      80      83      98     -46      215
Operating margin          4.3%    4.4%    6.2%     6.1%    8.3%    6.2%    4.7%    5.1%    6.3%   -2.8%     3.3%
Operating assets and                                                                                            
liabilities, net         3 329   2 970   2 828    2 820   2 793   2 793   2 810   2 706   2 627   2 477    2 477
Registered number of                                                                                            
employees                6 647   6 606   8 129    8 091   8 078   8 078   8 064   7 562   7 541   7 615    7 615
                                                                                                                
                                                                                                                
Service Division                                                                                                
External Sales          13 971   3 176   3 462    3 219   3 644  13 501   3 083   3 193   3 327   3 508   13 111
Total sales             15 554   3 539   3 858    3 582   4 061  15 040   3 493   3 575   3 687   3 888   14 643
Operating result         1 298     275     361      356     426   1 418     294     325     370     431    1 420
Operating margin          8.3%    7.8%    9.4%     9.9%   10.5%    9.4%    8.4%    9.1%   10.0%   11.1%     9.7%
Operating assets and                                                                                            
liabilities, net         2 812   3 090   2 928    2 839   2 759   2 759   2 830   2 867   2 694   2 655    2 655
Registered number of                                                                                            
employees                4 280   4 350   4 461    4 469   4 531   4 531   4 558   4 598   4 638   4 689    4 689
                                                                                                                
                                                                                                                
Aero and Steel                                                                                                  
Division
External Sales           3 983   1 042     962      831     906   3 741     971     937     806     837    3 551
Total sales              6 629   1 732   1 628    1 403   1 558   6 321   1 681   1 561   1 339   1 435    6 016
Operating result           206      60      63       30      60     213      47      25      -5    -234     -167
Operating margin          3.1%    3.5%    3.9%     2.1%    3.9%    3.4%    2.8%    1.6%   -0.4%  -16.3%    -2.8%
Operating assets and                                                                                            
liabilities, net         3 715   3 352   3 403    3 421   3 312   3 312   3 159   3 168   3 100   2 832    2 832
Registered number of                                                                                            
employees                5 264   5 153   5 343    5 202   5 162   5 162   5 110   5 058   5 002   4 978    4 978
                                                                                                                

*As of January 1, 2003, SKF implemented the Swedish accounting principle RR 25
"Segment Reporting". SKFs primary format
 is business segments which SKF considers agree to the SKF operational divison
structure.

Previously published amounts have been restated to conform to the current Group
structure of 2003.

Operating external assets and external liabilities are the items that have been
allocated to the Divisions/Segments. Tax and interest-bearing items have been
excluded.