Substantial Q4 loss sends Trelleborg into red for the year

ERJ staff report (DS)

Trelleborg, Sweden -- The global slowdown combined with a maelstrom of negative effects hit Trelleborg AB hard in the fourth quarter. An operating loss of SEK 800 million (Euro 74 million) on sales of SEK 7343 million in the last quarter pushed Trelleborg to a net loss for the 12-month period. 

For the 12 months, Trelleborg reported sales of SEK 31 263 million, up marginally from SEK 30 971 million reported a year ago. The company recorded an operating profit for the year, of SEK 374 million, down from SEK 1707 million a year ago, but the net result was a loss of SEK 258 million, compared with a profit of SEK 838 million a year ago.

For the final quarter, Trelleborg said volumes declined rapidly, which resulted in fixed costs not being met. Simultaneously, in taking action to meet the downturn, the company incurred costs of SEK 200 million for personnel reductions. SEK 150 million of this was in Trelleborg Automotive.

Trelleborg also said it is considering whether to appeal against an EC decision to impose a fine of euro 24.5 million resulting from Trelleborg Industrie's involvement in a marine hose cartel.

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Press release from Trelleborg