Currency effects help Trelleborg Wheel Systems maintain Q1 net sales
Net sales at Trelleborg Wheel Systems remained steady in the first three months of 2015 thanks to exchange rate effects, despite an 11 per cent year-on-year decline in organic sales. The Trelleborg business unit responsible for tyres and wheels achieved sales of SEK 1,122 million (£86.3 million), just a whisker under the SEK 1,126 million earned in the first quarter of 2014.
Trelleborg reports that sales of original equipment segment agricultural tyres were affected by “considerably lower” agricultural machinery production levels, while aftermarket sales declined to a lesser degree and outperformed the underlying market. Sales of tyres for material handling vehicles declined slightly during the quarter. Region-wise, sales were stable in Europe and lower in North America.
Both operating profit and margin decreased year-on-year, with operating sinking 22 per cent to SEK 116 million (£8.9 million) in spite of a SEK 17 million positive currency effect, and margin declining from 13.1 per cent in Q1, 2014 to 10.3 per cent.
Net sales for parent company the Trelleborg Group rose 14 per cent to SEK 6,370 million (£489.1 million) even though organic sales decreased four per cent year-on-year during the quarter. Operating profit rose seven per cent to SEK 833 million (£64.1 million), while operating margin lowered from 13.9 per cent to 13.1 per cent. Net profit rose 11 per cent to SEK 689 million (£53.0 million).
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