HP Agri Tyre Sales Soften Impact of Downturn for Trelleborg

Operating profit for the quarter, at SEK 102 million (£8.2 million) was in line with 2008 and was ‘favorably impacted’ by a high level of capacity utilisation in high-performance agricultural tyres and an improved product and price mix, Trelleborg reports. The company notes that work to expand and strengthen the business area’s offering continued during the quarter, including the signing of a strategic distribution agreement facilitating an expansion of the product portfolio in existing sales channels within Europe. The consolidation of the company’s industrial tyre production operations in Sri Lanka – a measure Trelleborg says is aimed at establishing a more efficient production structure – is now in its final stage. This involves relocating industrial tyre production operations from Hartville in the US, where production will be discontinued in the second quarter of 2009. Total company net sales amounted to SEK 6.877 billion (£554.6 million) for the quarter, a decrease of 14.8 per cent. Operating profit, at SEK 46 million (£3.7 million), was below that of the Wheel Systems division and down 92 per cent on the same period last year. Net profit, at SEK 65 million (£5.2 million), declined 79 per cent. Market outlook for the second quarter of 2009 expected to remain in line with the first quarter, adds Trelleborg.