Trelleborg expects 10% job losses in "challenging year"

ERJ staff report (DS)

Stockholm, Sweden -- Trelleborg AB has said theslowdown is now clearly noticeable and the Group is preparing itself for a challenging market situation in 2009.

The slowdown is most marked in the automotive sector, but less so in Asia and some other industrial sectors. Trelleborg said, "demand in offshore oil/gas remains strong. "

In the auto sector, Trelleborg is preparing to cut a quarter of its workforce. "To adapt capacity to the decline in demand, Trelleborg Automotive has had a program in progress since 2006. Combined with further cutbacks, Trelleborg expects that the number of employees within Trelleborg Automotive is decreasing by approximately 2,400 (about 25%) in 2008 and 2009. This will mean tht total employment within Trelleborg will fall by 10 percent by 2009.

Trelleborg said, "Short-term focus will be on cash flow and defending profitability and margins. The clear downward trend for the company's raw material costs is having a slightly delayed effect and will generate opportunities in 2009."

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Press release from Trelleborg