Trelleborg, Sweden – Trelleborg AB has reported growth in the first quarter of 2018 with both net sales and earnings (EBITDA) up compared to the first three months of 2017.
Sales were up 3% at SEK8.6 billion (€826 million) for the three months to the end of March, while earnings rose 11% to SEK 1.3 billion for the period, Trelleborg announced 25 April.
Commenting on the results, CEO and president Peter Nilsson said despite the growth, group’s “organic performance” was dampened by challenging market conditions for some of its project businesses.
Additionally, “unusually harsh winter conditions” impacted some operations, Nilsson added.
The company’s largest business area, Trelleborg Sealing Solutions, “performed well and reported its highest quarterly profit to date,” noted the Trelleborg boss.
Thanks to price adjustments, relatively stable raw material prices and the integration of Mitas Tyres, Trelleborg Wheel Systems noted “a clear improvement in profitability”, said Nilsson.
However, the aftermarket business was impacted negatively by the long winter season in the northern hemisphere.
This, said the official, “is deemed to have dampened the willingness of farmers to replace worn-out tires.”
In the three months to end of March, Trelleborg’s oil & gas operations remained under pressure amid challenging market conditions.
“However, the assessment is that a slight increase in market activity will lead to improvements in the latter part of the year,” Nilsson noted.
Without further elaborating, the Trelleborg leader said the company’s activities to “reposition” offshore oil & gas operations were “continuing as planned”.
Trelleborg Offshore & Construction business announced last November that it was going through a major restructuring as part of which business president Fredrik Meuler stepped down from his position.
Additionally, the company is ‘gradually discontinuing’ the manufacturing of subsea buoys for drilling equipment in deep-water environments in Houston, Texas.
Production equipment will be transferred and consolidated to existing operations in Skelmersdale, UK, whose manufacturing focuses on other types of deep-water buoys and engineered polymer systems.