Trelleborg, Sweden – Trelleborg Wheel Systems suffered a 21.6-percent drop in first quarter operating earnings on 0.4-percent lower sales, according to parent Trelleborg AB
Operating income dropped to $13.9 million (€12.8 million) on sales of $134.9 million, for an earnings ratio of 10.3 percent, down nearly three percentag points from a year ago.
Organic sales at Trelleborg Wheel fell 11 percent during the quarter ended 31 March on the negative effects of reduced OE demand from agricultural machinery makers, the company reported. Aftermarket agricultural tire sales also declined, albeit to a lesser degree.
Industrial tire sales also fell slightly, Trelleborg reported, impacted by the difficult weather conditions in North America during the quarter as well as the port slowdown on the US West Coast.
During the quarter Trelleborg concluded the purchase of a distributor in France, DG Manutention Services SAS., which specializes in tires for forklift truck customers in southern France, and announced the acquisition of another in Australia, Armstrong Tyres, which focuses on the agricultural sector there.
These two businesses together represent about $12 million in added annual sales. Financial terms were not disclosed.
Overall, Trelleborg AB reported operating and net income of $112.4 million and $82.8 million, respectively, on sales of $765.6 million. Both sales and earnings were up double-digits, the company reported.