Trelleborg posts 15% growth in first half

Trelleborg, Sweden – Trelleborg AB has posted a strong first half with earnings (EBIT) up 15% at SEK2.584 billion (€250 million) compared to the first six months of 2017.

Net sales rose 5% at SEK 17.363 billion during the period, according to the company results published 20 July.

EBIT, excluding items affecting comparability, for the second quarter stood at SEK 1.3 billion, up 19% compared to the previous year.

Revenue, in the three months to end of June, rose 6% year-on-year to SEK 8.7 billion.

Commenting on the results, Peter Nilsson, president and CEO, said general industry was performing well in all regions, with Trelleborg strengthening its presence in Asia.

Nilsson noted growing demand for Trelleborg tires – both agricultural and industrial & construction tires.

According to Nilsson, demand for Trelleborg agricultural tires is developing “stronger than the underlying market”, driven mainly by increased deliveries to OEMs of agricultural machinery.

“In comparison, European tractor registration – an important indicator for us – declined by about 3% during the period,” said the company head, noting a 9% rise in Trelleborg Wheel Systems’ revenue over the first six months of the year.

TWS' organic sales to OEMs of agricultural machinery noted a positive trend in most regions, performing particularly strongly in Asia.

The oil & gas operation continued experiencing a weak market, mainly affecting the business area Trelleborg Offshore & Construction. The operation again reported a loss for the quarter.

However, the Trelleborg boss expects recovery in this segment.

“We are now seeing clear signs of increased activity in this segment, which is expected to lead to increased deliveries with a certain time lag, depending on the nature of the business,” Nilsson said.

Turning to two recent acquisitions, in the US and in New Zealand, Nilsson said the company’s focus would remain on organic initiatives.

But, he added, “we are continuing to seek out bolt-on acquisitions that will further strengthen our niche positions.”