Trelleborg – Higher Q2 2021 EBIT despite rising raw material costs

Trelleborg Wheel Systems enjoyed strong year-on-year organic sales growth in the three months to 30 June, reports parent company Trelleborg AB. The division noted marked growth in sales of its tyres for agricultural machinery in most markets. Sales of tyres for materials handling and construction vehicles were also significantly higher than in both the preceding quarter and the same period of last year.

In total, net sales amounted to SEK 2.6 billion (£213.6 million) in Q2 2021 and were thus 25 per cent higher than in the second quarter of last year. EBIT rose to SEK 342 million (£28.6 million) and increased by 0.9 per cent to 13.4 per cent. Trelleborg states that EBIT and the margin increased as a result of higher sales volumes, structural measures implemented earlier and effective cost control.

Despite positive sales performance, margins were affected by the “rapid and strong price rise for raw materials” as well as by the sales mix. In response, Trelleborg has increased its prices and anticipates that these will “gradually offset the higher raw materials prices.”