Stable 2012 sales for Trelleborg Wheel Systems

Full year results for Swedish firm Trelleborg AB show its Trelleborg Wheel Systems business unit generated net sales of SEK 3,865 million (£386.8 million) in 2012, a very slight increase on a year earlier. In the final quarter of 2012 sales came to SEK 833 million (£83.4 million), 13 per cent less than a year earlier. Reporting this fourth quarter result, the company says Q4 sales were lower year-on-year in all market segments, however they were in line with general market trends. Operating profit amounted to SEK 449 million (£44.9 million) last year, a 12 per cent increase the Swedish company attributes to enhanced efficiency and favourable capacity utilisation. Final quarter operating profit dropped 27.3 per cent per cent to SEK 72 million (£7.2 million), primarily due to lower sales.

“The seasonally weak fourth quarter was distinguished by a lower rate of production in Europe, in contrast to the higher number of tractor registrations,” wrote Trelleborg in its fourth quarter and year-end report 2012, which was released on 13 February. “This prompted a number of OEMs to reduce their inventory levels. The global trend for material handlings vehicles were mixed, with lower sales in Europe but a stable market in North America. In China, the market for industrial tyres as well as agricultural tyres continued to develop positively.”

Trelleborg Wheel Systems’ annual net sales of SEK 3,865 million represent 18.2 per cent of the total sales of SEK 21,262 million (£2.1 billion) generated by Trelleborg in 2012, and its operating profit of SEK 449 million 19.2 per cent of the SEK 2,342 million (£234.4 million) total. Trelleborg Wheel Systems achieved an SEK 11.6 per cent return on sales during the year, higher than the 11.0 per cent company average. Capital employed by the business unit in 2012 came to SEK 2,794 million (£279.6 million) and an 18.4 per cent return on capital employed was achieved.

Giving his overview of Trelleborg AB’s performance during the year, company president and CEO Peter Nilsson stated: “Full-year 2012 was a good 12 months for Trelleborg. In a turbulent economic climate, we improved our geographic balance and portfolio of operations and strengthened our positions…It is a demonstration of our strength that we are able to report satisfactory sales, operating profit and operating margin, despite the period that were underpinned by the considerable unrest prevailing in the global economy in the fourth quarter. In addition, cash flow developed positively as a result of efficient management of working capital. We are seeing signs that the market trend is beginning to stabilise, albeit uncertainty remains. We are carefully monitoring economic developments and have a solid financial base and continued high readiness to manage a volatile market.”