Trelleborg Wheel Systems: Lower Q3 2021 EBIT despite strong organic sales

Sweden’s Trelleborg AB shares that its Trelleborg Wheel Systems business achieved “strong” organic sales growth during the three months to 30 September 2021, with significant growth in all product categories and in most geographies. Overall net sales were up 14.2 per cent year-on-year, to SEK 2.37 billion (£201.36 million).

Rising raw materials, freight and energy prices put pressure on margins, however, as pricing formulas with OEM customers create a delay when it comes to adjusting prices. Trelleborg expects that profitability will “gradually” recover during the current quarter. EBIT amounted to SEK 238 million (£20.23 million) in Q3 2021, 12.5 per cent lower than a year earlier. EBIT margin decreased three percentage points to 10.1 per cent.

Western Europe remained Trelleborg Wheel Systems’ most important sales region, with 57 per cent of the total sold here. Agricultural sector sales accounted for 63 per cent of the global total.