Trelleborg tyre/wheel sales up 5.6%

In its April-June interim report, Trelleborg reports a 5.6 per cent year-on-year rise in sales for its Wheel Systems business area, with net sales amounting to SEK 1,111 million (£111.4 million) during the quarter. The company states that sales of agricultural tyres were level with the year earlier period, while sales of tyres fitted on materials handling vehicle were weak during the quarter, primarily in Europe. Operating profit remained at a similar level to a year earlier, rising 3.0 per cent to SEK 137 million (£13.7). Operating margin declined from 12.6 per cent to 12.4 per cent.

The entire Trelleborg Group’s second quarter net sales from continuing operations were SEK 5,628 million (£564.1 million), a year-on-year increase of 0.3 per cent. Net sales for the group in total were down 25.3 per cent compared with the second quarter of 2012. The second quarter of last year included net sales of SEK 1,921 million from discontinued operations, predominantly from Trelleborg Automotive AVS, which is now part of TrelleborgVibracoustic. Operating profit for the quarter, excluding items affecting comparability and the participation in TrelleborgVibracoustic, rose by 3.0 percent to SEK 723 million (£72.5 million), equivalent to an operating margin of 12.8 per cent, up from 12.5 per cent a year earlier and the group’s highest margin to date.

“Trelleborg has once again reported a strong quarter,” commented company president and CEO Peter Nilsson. “The operating profit and operating margin for the quarter was the highest to date for the group. There was a positive trend in organic sales, with growth of two per cent compared with the preceding year, driven by a slightly positive trend in Europe, particularly in general industry, and continued good growth in Asia.

“Market outlooks remain uncertain,” added Nilsson. “However, our overall assessment is that demand is deemed to be on a par with the second quarter of 2013. As before, we are following economic developments closely and have a continued high level of preparedness to address fluctuating market conditions.”