Trelleborg suffers in first quarter, but generated positive cash flow

Stockholm, Sweden -- Trelleborg AB has reported a sharp fall in sales and earnings for the three months ended March 31, 2009. Net sales in the first quarter of 2009 totaled SEK 6,877 million (Euro 628 million), down from SEK8,067 million a year ago.                                                                                  

The company was able to report an operating profit of SEK 46 million, down from SEK 574 million. The company generated more cash, however, due to reductions in expenditure and a reduction in stocks. Operating cash flow for the three months amounted to SEK 478 M (neg: 388). Free cash flow amounted to SEK 26 M (neg: 698).

The Board of Directors has resolved, subject to approval by the Annual General Meeting, to raise SEK 2.2 billion, before transaction cost, in a rights issue. The rights issue will strengthen Trelleborg's financial position and increase the ability of the Group to further improve its market positions.

“The year 2009 began with a continued sharp decline in demand and the prevailing sense of uncertainty regarding the demand trend during the nearest quarters is considerable. Since the second quarter of 2008, we have implemented extensive capacity adjustments and we are now working aggressively to capitalize on the opportunities arising in the current market situation. We are continuously improving our market positions.,” said President and CEO Peter Nilsson.