SKF has acquired Baker Instruments Company, Ft Collins, Colorado in USA, a leading manufacturer of test and diagnostic instruments for electric motor assessment.

SKF and Aker Kvaerner have established a partnership for Condition Based Maintenance (CBM) for the offshore and onshore oil and gas industry. Condition Based Maintenance reduces plant downtime, increases equipment reliability and reduces maintenance by means of optimized maintenance and inspection programs, real time monitoring systems and competence.

SKF has signed an agreement to acquire ABBA Linear Tech Co., Ltd., a leading Asian manufacturer of profile rail guides, based in Taiwan.

SKF reports record profits and record sales for the full year and for the fourth quarter of 2006. The Board proposes a 12.5% increase in the dividend to SEK 4.50 per share and an extra distribution of SEK 4,553 million, corresponding to SEK 10 per share, adding up to a total distribution to shareholders of SEK 6,603 millions.

SKF is closing its manufacturing plant in Uitenhage, South Africa, by the end of June 2007. The plant today has 134 employees. In the past 10 years the factory has been part of the SKF global manufacturing system and more than 90% of the production from Uitenhage has been exported.

Tom Johnstone, President and CEO of SKF was recognized with the ISSSP (The International Society of Six Sigma Professionals) Six Sigma Premier Leader Award by the ISSSP, the International Society of Six Sigma Professionals, for his work with committing the company to continuous improvement.

SKF has acquired Economos Austria GmbH from Salzer Holding GmbH. Economos is an Austrian industrial seals company manufacturing hydraulic and pneumatic seals for the oil and gas, food and beverage, pulp and paper, mining and steel industries.

SKF’s new factory for the manufacturing of large size bearings in Dalian, in the North East of China, has now started to operate.

SKF’s acquisition of John Crane’s lubrication systems business has now been completed. This business is headquartered and has its manufacturing operations in Muurame in Finland and in addition has sales offices in Sweden, Germany, USA and Brazil.

SKF and Salzer Holding GmbH, the owners of the Austrian industrial seals company Economos Austria GmbH, have signed a Memorandum of Understanding related to the acquisition by SKF of 100% of the shares in Economos.