Trelleborg Wheel's Q2 earnings, sales up (Update)

ERJ staff report (TB)

Stockholm, Sweden -- Trelleborg Wheel Systems reported a gain in pretax operating earnings of nearly 61 percent in the quarter ended June 30 as sales jumped 26.5 percent to $157.4 million.

The agricultural and industrial tyre and wheel business unit of Trelleborg A.B. reported the gains reflected “significantly” higher demand for its products, both in the OE and replacement markets. Also contributing was the first-time inclusion of business from the acquisition of Watts Tyre Group.

Pre-tax operating income for the six months ended June 30 was up 35.1 percent to $38.6 million, and sales rose 28.7 percent to $306.1 million.

Trelleborg said profits increased because of favorable volume growth, especially in the extra large tyre segement. The firm managed to cover increased raw materials costs, although not fully.

Trelleborg as a whole reported 9.8-percent higher operating profits of $111 million for the quarter on 5.5-percent better sales of $1.19 billion.

“Demand during the quarter remained favourable in most segments,” said President and CEO Peter Nilsson. “Higher raw material costs have been generally compensated by higher sales volumes, price adjustments and other measures. We are continuing to focus our operations and raise our presence in selected profitable segments.”

Trelleborg said it looks for third-quarter demand to remain in line with the second quarter, adjusted for seasonal variations.

From Tire Business (A Crain publication)

Press release from Trelleborg