Trelleborg Reiterates Long-Term Strategic Approach

In preparation for the its Capital Markets Day, held in early December, Trelleborg reiterated the company’s long-term strategic approach, which it says is currently focused on cash flow and adjustments to the prevailing market situation. “We have an increasingly focused and profitable operation within large segments of our business, and we are convinced that we will emerge strengthened from the slowdown that we are currently experiencing in many markets,” said Trelleborg CEO Peter Nilsson.”

The slowdown indicated in the company’s outlook for the fourth quarter is now clearly noticeable, says Trelleborg, and the group is preparing itself for a challenging market situation in 2009. However, the trend varies within different segments. The exceptional downturn in the car industry continues, the company notes. Trelleborg expects that the number of employees within Trelleborg Automotive will decrease by approximately 2,400 – about a quarter – in 2008 and 2009. These continuous adjustments will be made on an ongoing basis, with a pay back time period of less than one year. The company adds that adaptations to the prevailing market situation will mean that the total number of Trelleborg Group employees will decline by more than 10 per cent in 2008 and 2009.

The Wheel Systems business area continues to develop favourably, says Trelleborg. The market for tractor tyres continues to develop toward increasingly larger tyres, an area in which Trelleborg reports an extremely strong position; the company is capturing market share in this business area, Trelleborg adds. In line with current global industry trends, a downturn is expected in the market for solid industrial tyres. However, the company believes this segment will benefit from the long-term structural growth connected with increased global trade.