Trelleborg, Swedish – Trelleborg AB has registered a 15% year-on-year increase in operating profit, to SEK4.7bn (€447 million), in 2018, the company announced 13 Feb.
Net sales for the full year increased 8% to SEK34.0 billion, compared to 2017.
The earnings improvement was linked to “higher volumes, cost control and synergy extraction,” a company spokeswoman explained to ERJ.
“We achieved a record result, although parts of our project business fought an uphill battle,” said president and CEO Peter Nilsson in a 13 Feb presentation of the company’s 2018 results.
Fourth quarter sales increased by 8% to SEK8.3 billion, compared to the same quarter the year before.
The company’s largest business unit Trelleborg Sealing Solutions (TSS) performed well in all regions in the fourth quarter.
The segment’s deliveries to both general industry and the aerospace sector were on the rise, according to Nilsson.
TSS’ sales to the automotive industry, however, declined, due in part to “the [weak] North American market.”
Trelleborg’s tire business saw a mixed trend during the final quarter of the year.
Sales of agricultural tires were slightly negative, mainly due to unfavourable prior-year comparatives.
The market in the final quarter of 2017, noted Trelleborg, was very strong as new emission regulations drove new registrations of tractors before the year-end.
Tire deliveries for materials-handling vehicles and construction machinery “grew satisfactorily,” Nilsson added.
The fourth quarter, however, remained “difficult” for project-related operations in Trelleborg Offshore & Construction.
The operation was also charged with impairments related to “certain project transactions,” said Nilsson.
Turnaround measures are ongoing to make the operation more efficient, with “distinct earnings improvement” expected in the second half of 2019.
Group-wide, Trelleborg’s CEO said the company was investing in new sites and new technology, while adding capacity at several locations.
The presentation did not give details about these projects or investments.