Trelleborg Q3 profits hit by raw materials costs

Stockholm, Sweden -- Sales

in the Trelleborg Group continued to grow during the third quarter, but profits fell in the period. Net

sales increased by 8 percent during the quarter and by 13 percent during

the first nine months, driven by organic growth and acquisitions. However operating profit fell 12 percent in the quarter eliminating all profit growth in the year to date.

“The trend in our operations outside the

automotive industry has remained positive, despite the historically high

price levels of raw materials. Within automotive-related operations,

high raw-material costs and production cuts among our main customers are

placing considerable demands on forceful measures to enhance the cost

structure,” says President and CEO Peter

Nilsson.

The company reported operating profits of SEK 364 million (Euro 39.5 million) on sales of SEK 6306 million (Euro 683.8 million) for the three months to the end of September 2006.

For the twelve months (Oct 2005 - Sept 2006) Trelleborg reported operating profits of SEK 1711 million (1738 million a year earlier) on sales of SEK 26 101 million (23 509 million a year earlier)