Trelleborg buoyed by strong second quarter

Trelleborg, Sweden - Trelleborg AB has reported second quarter organic sales 31% higher than for the same pandemic-hit quarter in 2020 and 6% above the equivalent figure in 2019.

Net sales during the quarter increased 23%, despite being negatively impacted by exchange rate effects, and amounted to SEK8,637 million (€845 million), the company said 22 July.

Second quarter earnings (EBIT, excluding items affecting comparability) rose 58% year-on-year to SEK1,387 million, which the company said was its "best to date for a single quarter."  

Trelleborg linked the earnings performance to higher volumes in all business areas as well as "continued good cost-control and effective price discipline."

At Trelleborg Sealing Solutions, organic sales to general industry and the automotive industry "grew significantly" in all regions, though aerospace sales came in lower than in the prior-year second quarter.

However, the company noted "clear signals... that the bottom has been reached [in the aerospace market] and growth is expected to occur from the current levels going forward."

Trelleborg Wheel Systems reported growth in sales of tires for agricultural machinery, materials handling and construction vehicles compared with the second quarter of 2020. 

Tire margins, however, were impacted by a "rapid and strong price rise for raw materials and partly by the sales mix." 

Regarding prospects for the second half of 2021, Trelleborg reported a "record level" of order-intake during the second quarter in many business areas with order books now well filled.
 
Third-quarter demand is expected to match that of the preceding quarter, though there is uncertainty over the pandemic’s impact going forward.

"Activity is high in most of our manufacturing units and price adjustments have already been implemented to address the rising raw materials prices," said Peter Nilsson, president and CEO.  

Trelleborg's leader, however, noted that current strains in the supplier chain and the continuing development of the pandemic could restrict sales growth.

But, concluded Nilsson: "Our general assessment at present is that demand for the third quarter will be on a par with the high level of demand in the second quarter, adjusted for seasonal variations.”