Trelleborg Wheel Systems posts positive 2013 results
Depending on whether you prefer the figure for continuing operations or the total consolidated result, Trelleborg Group net sales either rose 1.0 per cent – or declined 14.9 per cent – to SEK 21,262 million (£1.96 billion) in the 2013 fiscal year. The consolidated result was down from SEK 25,237 million in 2012 and includes the impact felt from the formation of TrelleborgVibracoustic, the joint venture formed with Freudenberg in 2012. Operating profit for 2013 came to SEK 2,815 million (£259.47 million).
While Group consolidated net sales fell by almost 15 per cent, the company’s tyre and wheel business enjoyed an 8.4 per cent rise in sales during 2013; Trelleborg Wheel Systems recorded net sales of SEK 4,189 million (£386.12 million) for the year and accounted for 19.7 per cent of the Group total. The company comments that the acquisition of Maine Industrial Tire in December 2012 positively impacted sales last year; organic sales for the full year declined one per cent year-on-year, with negative organic sales in the first half of the year outweighing positive organic sales in the second half. Agricultural tyre sales rose year-on-year, while organic sales for materials handling vehicle tyres was negative and only rose overall due to the Maine Industrial Tire purchase. Operating profit at Trelleborg Wheel Systems rose 9.1 per cent to SEK 490 million (£45.17 million) and operating margin increased 0.1 per cent year-on-year to 11.7 per cent.
Speaking of the Group’s outlook for 2014, Trelleborg president and CEO Peter Nilsson said “compared with the situation at the beginning of 2013, we now find ourselves on more stable ground. While some signs of economic recovery are visible, it is too early to talk about a broad-based upturn. We are continuously monitoring developments and are maintaining preparedness to adjust our various businesses to fluctuating demand.”