Trelleborg reports strong growth in 2010

ERJ staff report (DS)

Stockholm, Sweden --

Trelleborg has reported higher sales and stronger margins for the full year and the final three months of 2010. Net sales in the quarter, including discontinued operations, increased to SEK 7,045 M (euro ??? million) (previously SEK 6,755 million) and to SEK 28,778 M (27,059) for the full year.

Operating profit for the quarter, including discontinued operations, increased to SEK 423 M (197) and to SEK 1,952 M (773) for the full year.

In terms of continuing operations,

Net sales for the full year increased to SEK 27,196 M (24,769).

Operating profit for the full year increased to SEK 2,036 M (734).

Trelleborg's sales to all of its market segments - light vehicles, general industry, agriculture, offshore oil/gas, transport, infrastructure and aerospace - were higher than in the fourth quarter of 2009.

Compared with the third quarter of 2010, sales were higher to the general industry, agriculture, transportation equipment and aerospace segments. Sales to the light vehicle segment and the project-related segments of offshore oil/gas and infrastructure construction were in line with the third quarter of 2010.

Operating margin remained strong and improved compared with the year-earlier period as a result of volume growth and a more efficient structure.

Cost increases for raw materials have a delayed impact on earnings and had a negative effect on the earnings for the quarter, mainly affecting Trelleborg Automotive and Trelleborg Wheel Systems. Prices for raw materials continued to increase during the quarter and are expected to remain volatile.

Intensified acquisition and divestment activity, and increased variable salaries, resulted in higher central costs during the quarter

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Press release from Trelleborg