Trelleborg declares Q2 a ‘strong quarter’
Trelleborg president and CEO Peter Nilsson has reported a “strong quarter” for the Swedish company. During the second quarter of 2012 the firm’s sales rose slightly to SEK 5.66 billion (£520 million) while operating profit increased 34 per cent to SEK 875 million (£80 million). Net profit amounted to SEK 712 million (£65 million).
“The margins (15.6 per cent) and earnings in the quarter was Trelleborg’s best to date,” stated Nilsson. “Furthermore, cash flow was strong. Sales growth was favourable in North America and in parts of Asia, while the trend in Europe was mixed. Organic growth was overall slightly negative, which is due to lower demand in parts of Europe. We continue to invest in emerging markets like Brazil, India and China to enhance our geographic balance, which to some extent continues to burden the result and increases the investment level during the quarter.”
In the company’s Wheel Systems business underlying demand from OEM customers was said to be stable, and enjoying growth in North America. Underlying demand in the aftermarket weakened in Europe but continued to be favourable in some sub-segments. Net sales rose five per cent to SEK 1.05 billion (£97 million) and operating profit increased 23 per cent to SEK 133 million (£12 million). Operating margin was 15.0 per cent.
Companywide, demand is expected to be lower in the third quarter of 2012 compared with the second, adjusted for seasonal variations. “The market outlook gives cause for caution,” Nilsson noted. “We follow of course the developments closely and are well prepared to manage uncertainties.”