ERJ staff report (DS)
Stockholm, Sweden -- Trelleborg AB has recorded steady growth in the last 12 months. Sales and operating profits both grew by around 10 percent in the period
The company said it recorded operating profits of SEK 1707 million ( Euro 183 million) on sales of SEK 30 971 million ( Euro 3320 million). In 2006 the company recorded operating profits of SEK 1507 million on sales of SEK 27 284 million.
Trelleborg said it expects continued favourable growth in most of the Group's market segments. For such segments as Aerospace and Offshore Oil/Gas, demand is expected to remain highly robust.
Trelleborg referred to the on-going anti-trust enquiries into Marine hose and marine fender businesses. It said, "Former managers of one of the Group's French subsidiaries pleaded guilty and were fined and sentenced to prison sentences. Also in the competition investigation pertaining to fender operations, former managers have pleaded guilty. The managers concerned have been dismissed and no longer work for the Trelleborg Group."
The company said it is still impossible to estimate the total financial impact of the actions on Trelleborg, but Trelleborg said it estimates costs for the internal action programme will be around SEK 100 million (Euro 11 million)
Trelleborg also announced that it will close its operations in Derbyshire, UK, where it makes large train gangways. Trelleborg said the decision is in line with the business area's portfolio evaluation, which showed that the operation is not considered to offer attractive long-term growth and margin trends.
Trelleborg Engineered Systems has decided to consolidate and focus its production of special hose, and to discontinue certain non-profitable items from its range. This will entail that certain production of special hoses will be consolidated in the town of Trelleborg, Sweden, while certain parts are relocated to the business area's main plant for special hoses in Clermont-Ferrand, France.
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Press release from Trelleborg