Trelleborg posts ‘best-ever’ quarterly earnings, steady sales

Trelleborg, Sweden – Trelleborg AB has posted second quarter sales – from continuing operations – about level with the prior-year period at SEK8,711 million (€751 million).

The performance, reported 18 July, reflected a 1% year-on-year increase in organic sales offset a similar-level decline in revenues due to structural changes.

Earnings (EBITA, excluding items affecting comparability) increased 2% year-on-year to SEK1,599 million – representing a ‘best-to-date performance’ for a single quarter.

The group performed “well in the second quarter... after a few quarters in which we reported a slight organic decline,” commented Peter Nilsson, president and CEO.

Organic sales for Trelleborg Industrial Solutions (TIS) “slowed marginally” amid weak demand in the construction market and several industrial segments.

On the other hand, TIS achieved growth in the automotive and energy sectors and benefited from new orders for major infrastructure projects.

Organic sales at Trelleborg Medical Solutions increased two percentage points: helped by sales to the North American medtech market, while inventory trend made the third quarter outlook “slightly more positive.”

Trelleborg Sealing Solutions reported a slight decline in organic sales to the general industry sector, but increased deliveries to the automotive and aerospace industries.

For the group overall, Nilsson said: “Our general assessment of the current situation is that demand in the third quarter will be somewhat higher than in the second quarter.”

Trelleborg’s margin target of 20%, he added, “is within reach as the markets improve and the synergies from previous acquisitions are realised according to plan.”