Trelleborg reports “solid end” to record year

Trelleborg, Sweden – Trelleborg has posted a 4% year-on-year increase in fourth quarter sales to SEK 8,421 million (€747 million) – largely due to acquisitions.

Earnings (EBITA, excluding items affecting comparability) lifted 6% year-on-year to SEK1,424 million, corresponding to an operating margin of 16.9%, the group added 2 Feb.

“Both sales and EBITA, with corresponding margin, were the best to date for a fourth quarter and represented a solid end to the year,” stated Trelleborg.

For full-year 2023, net sales from continuing operations, increased 14% year-on-year to a record SEK34,286 million.

The earnings gains reflected: 2% organic growth, 7% from structural changes and 5% from currency movements, noted the Sweden-based industrial rubber products maker.

Full-year earnings (EBITA, excluding items affecting comparability) increased 13% year-on-year percent to SEK6,002 million – again a record.

In the fourth quarter, sales at Trelleborg Industrial Solutions fell marginally as lower sales in Asia and weaker construction markets offset gains in marine and automotive markets.

Trelleborg Sealing Solutions (TSS) saw a slight rise in organic sales on pricing adjustments and improved automotive and aerospace markets in final quarter 2023.

However, the improvements at TSS were largely countered by weaker sales to general industry in Europe and North America and to healthcare & medical customers.

Regarding prospects for 2024, Trelleborg's management said: “We find ourselves in a somewhat cooler macro environment compared to the beginning of 2023."

“Our general assessment in the current situation is that demand in the first quarter will be on a par with the fourth quarter”, added Peter Nilsson, president and CEO.

Nevertheless, Trelleborg stated that it would “continue to invest at a high rate” in 2024, focusing on growth areas, including aerospace, healthcare & medical, semiconductors.