Trelleborg Wheel Systems – First Half Year Results

Figures show that Trelleborg Wheel Systems achieved sales for the first half of the year of 1,470 million Swedish Kroner (SEK), or 160.2 million Euro. Operating profit was up 33 per cent to SEK 84 million (9.

15 m Euro), compared with last year’s first half figure of SEK 63 million (6.87 m Euro). During the second quarter, turnover was SEK 713 million (77.

7 m Euro) and operating profit was SEK 39 million (4.25 m Euro). Operating profit was favourably affected by the company’s restructuring programme, an improved product mix and increased productivity.

High raw material prices were partially offset by price increases, especially in farm tyres.The European market for farm tyres declined by around eight per cent in the second quarter, partly as a reaction to the strong performance in the first quarter, partly due to lower farm revenues and uncertainty regarding EU farm subsidies. However, the radial tyre segment, where TWS is relatively strong, declined less than the rest of the market.

During the quarter, TWS launched several marketing and promotional measures to counteract the weak demand. In North America, the market for farm tyres was broadly similar to that in 2002.The market for industrial tyres in Europe, which depends to a certain extent on overall industrial performance, was down seven per cent in the second quarter, but TWS recorded positive sales development despite this.

In North America, the industrial tyre market trend was more favourable, giving TWS cause for “cautious optimism” regarding both OEM and aftermarket sales.Outside Western Europe and North America, TWS reported ongoing strong sales growth in markets such as South America, South Africa, Asia and Eastern Europe..