Trelleborg, Sweden - Trelleborg AB, the Swedish diversified rubber and allied products manufacturer, has ended its third quarter of this year with record earnings and margins. The results include a more than 150-percent rise in operating profit for the first three quarters of 2010 over the same period last year, taking this to SEK 1698 million (Euro182.5 million).
Organic sales rose 15 percent compared with the third quarter of 2009, reaching SEK 6865 million as against SEK 6230 million for the same period in 2009, the firm said in a 27 Oct announcement.
Looking at the first three quarters of the year shows net sales of SEK 20 969 million, up 8.7 percent from the SEK 19 288 million recorded for the first three quarters of 2009, the announcement said.
In terms of earnings and margins, the third quarter of 2010 was the strongest ever such quarter for the Trelleborg Group, within its existing structure, the report continued. Operating profit rose to SEK 545 million, up 43 percent on the SEK 381 million reported in the same quarter of 2009. Items affecting comparability amounted to an expense of SEK 55 million in Q3 2010, slightly higher than the Q3 2009 expenseof SEK31 million, the firm added.
This performance also showed in results for the first three quarters of 2010, with operating profit almost trebling to SEK 1698 million as against SEK 650 million for the same period in 2009. This resulted in a reported profit of SEK 1094 million as against SEK 446 million for the prior year's first three quarters.
Earnings per share more than doubled, from SEK 1.9 for the first three quarters of the present year to SEK 4.0 for the same period in 2009.
The EBITDA(earnings before interest, taxes, depreciation and amortisation) margin rose to 12.5 percent in Q3 2010 versus 10.8 percent in the third quarter of 2009. The EBITDA margin for the most recent twelve-month period reached our financial target of 12 percent for the first time, the announcement added.
The earnings and margin trend demonstrates that we continue to derive beneficial effect from the underlying improved structure, Trelleborg commented, pointing out that earnings per share after allowing for items affecting comparability increased to SEK 4.35 for the first three quarters of 2010, up from the 2009 figure of SEK 2.36.
"We are also continuing our efforts to increase our presence in selected, profitable segments and in expanding geographical marketsâ€, says president and CEO Peter Nilsson added.
Looking ahead, Trelleborg said it expects that, overall, demand in the fourth quarter of 2010 is expected to remain in line with or slightly better than the third quarter of 2010, adjusted for seasonal variations.