Trelleborg, Sweden -- Swedish polymer group Trelleborg AB posted a 5.8 per cent drop in second quarter operating profit for continuing operations from the same period last year, putting the setback to increased costs of raw materials.
The company reported an operating profit for the April-June quarter of SEK507 million (Â£37.5 million), not including restructuring costs and impairment losses, and SEK975 million (Â£72.2 million) for the first half of the year - an increase of 4.6 per cent from last year.
Despite of the profit results, Trelleborg's net sales increased by 11 percent to SEK7.1 billion (Â£525.4 million) during the quarter and by 16 percent SEK14.1 billion (Â£1.1 billion) for the first six months driven by organic growth and acquisitions.
''We are continuing our strategic expansion with growth in attractive segments,'' said Trelleborg president and CEO Peter Nilsson.
''In the short term, we will be burdened by increases in the cost of raw materials.
''Accordingly, we are prioritising price increases and efficiency-enhancing measures in all areas of the group.''
During the report period and shortly afterward, the company signed contracts for the acquisition of four companies, with total sales of approximately SEK300 million (Â£22.2 million).
The group expected a continued market growth in line with the first six months of this year but anticipated cost pressures in the third quarter due to accelerated prices for raw materials.
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Press release on Trelleborg six-month report