Tyre business results flat at Trelleborg despite lower organic sales
Sweden’s Trelleborg AB has reported a 5.8 per cent increase in net sales in the third quarter of 2013, with acquired business contributing some two per cent towards this result. Company president and CEO Peter Nilsson commented that Trelleborg “achieved these healthy earnings despite weaker market trends for several market segments and thus a slight fall-off in organic growth.”
On the back of net sales of €5.6 billion, company operating profit (excluding participation in TrelleborgVibracoustic and items affecting comparability) increased 6.1 per cent to €730 million. Operating margin remained stable at 13.0 per cent. Net profit rose 52.6 per cent to €583 million.
The company expects demand in the fourth quarter of 2014 to be on par with the third quarter of 2014, adjusted for seasonal variations.
The Trelleborg Wheel Systems business recorded net sales of €1.0 billion in the third quarter, virtually unchanged from a year earlier. Organic sales declined six per cent year-on-year, with agricultural tyre sales “impacted by a severe deterioration in market conditions for agricultural tyres to OEMs.” Aftermarket sales rose slightly, despite a weaker underlying market. The business area continued to capture market share in the sub-segment for extra-large agricultural tyres.
European sales of tyres for materials handling vehicles performed positively during the quarter. The North American market also noted improved sales, while sales to South America were unchanged.
Operating profit fell 9.4 per cent to €106 million in the third quarter, with the margin down from 11.5 per cent to 10.6 per cent.
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