Trelleborg Reports Improved Operating Margin in April – June Period

In its interim report for the months between April and June 2009, Trelleborg reports that “in a difficult market situation, we have successfully managed to generate a continued strong cash flow and improved our operating margin compared with the first quarter of 2009.” The company also states that effects of its “capacity adjustments” are gradually increasing, although the sense of uncertainty regarding the future remains “great”.

Net sales in the second quarter of 2009 totalled SEK 6.867 million, down 17.5 per cent on the same period a year earlier. Operating profit, at SEK 159 million, decreased 52.8 per cent year-on-year. Operating cash flow was SEK 967 million, 29.6 per cent up on a year earlier; Trelleborg comments that this figure was positively impacted by lower tied-up capital and a lower level of investment. Free cash flow amounted to SEK 613 million.

“We continue to take measures focused on establishing a long-term efficient and flexible structure,” Trelleborg president and CEO Peter Nilsson notes. “We continued improving our market positions during the quarter. A sound financial position, strengthened by the rights issue, provides us with excellent opportunities to work proactively in order to further strengthen our positions.

The completion of a the aforementioned rights issue, which totalled SEK 2.169 billion, is reported to have created the necessary conditions to further improve the Group’s market positions. Net debt to equity improved to 79 per cent.