ERJ staff report (BC)
Trelleborg, Sweden – Trelleborg Wheel Systems reported lower revenue and earnings in the quarter ended 31 March on lower unit sales of both industrial and agricultural tires, according to Tire Business.
Sales dropped 1.7 percent in the quarter to €130.4m, while operating profit fell 7.7 percent to €17.0m million, or 13 percent of sales.
The sales decline would have been even greater were it not for the addition of revenue from recent acquisitions and positive exchange rate effects, the business reported in parent Trelleborg A.B.'s first-quarter earnings report.
Trelleborg noted OE sales of industrial tires in Europe declined "significantly," while the agricultural segment performed more in line with the underlying market, even if sales were down.
Trelleborg Wheel said its acquisition of Maine Industrial Tire L.L.C. is "progressing according to schedule," and the business made a positive contribution to the quarterly operating profit.
Trelleborg also said it has finalized its acquistion of the industrial tire business of Industriebanden Beheer B.V., a Dutch business with annual sales of about €5.8m. Terms were not disclosed.
Overall, Trelleborg A.B. reported a 4-percent drop in operating earnings to €75m on 5.7-percent lower sales of €634.1m. Net income slipped 2 percent to €57.7m.
Trelleborg declined to make a detailed forcast for the rest of the fiscal year, citing an uncertain market outlook.
"As we have done in the past," said Trelleborg President and CEO Peter Nilsson, "we are carefully monitoring the economic trend and are continuing to maintain a healthy preparedness to manage shifting market conditions."