ERJ staff report (LMH)
Trelleborg, Sweden - Trelleborg's net sales in the third quarter rose to SEK 7191 million (Euro 790 million) and organic sales increased by 11 percent, the Swedish company said in its 26 Oct results.
Operating profit for the quarter ended 30 Sept was SEK 621 million, up from SEK 5050 million during the same period in 2010. The EBITDA (earning before interest, tax, depreciation and amortisation) was 13 percent, up from 12.3 percent in Q3 2010. Net profit for the period was SEK 420 million.
In the engineered systems business, Trelleborg reported Q3 net sales of SEK 2341 million, down 1 percent from SEK 2376 million in 2010. However, operating profit in the segment was SEK 166 million, down from 215 million in Q3 2010. Operating margin was 7.1 percent, down from 9.1 percent in 2010. Trelleborg attributed this decline to production disruptions in the offshore oil/gas segment and continued start-up costs in Brazil.
In the automotive business, Trellborg posted net sales of SEK 2243 million in the third quarter, up 9 percent year-on-year. Operating profit was up from SEK 95 million in 2010 to SEK 122 million in 2011. Operating margin increased to 5.3 percent. Trelleborg noted that the business continued to perform well and that all regions were showing positive development.
In sealing solutions, Q3 net sales were SEK 1705 million, up 16 percent year-on-year. Operating profit was up from SEK238 million in Q3 2010 to SEK 386 in 2011. Operating margin was 22.7 percent, up from 16.1 percent in 2010.
In wheel systems, Trelleborg said net sales were up 30 percent in the third quarter at SEK 953 compared with the previous year. Operating profit was SEK 98 million, up from SEK 77 million. However, the operating margin stayed roughly static at 10.3 percent from 10.5 percent year-on-year. Trelleborg attributed this to the impact of a changed product mix.
â€œWe continue to focus on selected segments and markets. We are gradually modifying Trelleborg's global presence and concentrating further on selected niches,â€ said Trellborg CEO Peter Nilssen.
â€œDemand remained favourable during the quarter, with growth being particularly robust in Asia. Measured in terms of operating profit this was the best third quarter so far in the group's history. Margins continued to improve,â€ he added.
Nilssen said there is a prevailing sense of uncertainty in the market and Trelleborg is carefully monitoring developments, but is better prepared to deal with a downturn in the market.
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Results from Trelleborg