Three month report January-March 1999

Three month report January - March 1999 *Operating profit amounted to SEK 174 M (221). *Financial income and expense totaled SEK 156 M (200). *Sorb Industri AB to be listed on Stockholm Stock Exchange. *Skoogs operations in Germany sold. *New strategic direction. *Restructuring program planned. In line with the President and Board's proposal that Trelleborg's holding of common stock in Boliden be spun off to shareholders, the holding in Boliden is not reported in accordance with the equity method after December 31, 1998 Net sales, earnings and profitability The Group's net sales for the first quarter of 1999 totaled SEK 6,063 M (SEK 6,073 M). Excluding divested operations, net sales in the first quarter of 1998 totaled SEK 5,810 M. Group operating profit for the first three months of the year totaled SEK 174 M (221). Operating profit for the corresponding period of 1998 excluding participations in the results of Boliden Ltd and the divested units, Intertrade and Chemtrade, amounted to SEK 173 M. The return on the Group's capital employed in operations was 6.2 percent (8.0). Profit after financial income and expense for the period amounted to SEK 156 M (200). The financial net during the first quarter was positively affected by exchange gains. Profit after tax and minority interests totaled SEK 108 M (148, excluding Boliden: 126). Balance sheet, cash flow and investments As at March 31, 1999, the Group's net debt amounted SEK 3,099 M, an improvement during the period of SEK 188 M. The divestment of Skoogs' German operations contributed SEK 191 M. The cash surplus from operations, meaning operating profit after the reversal of depreciation, amounted to SEK 320 M (322). Based on a pro forma balance sheet, the debt/equity ratio was 36 percent. On April 1, 1999, the Group's PRI pension provision was reversed and, in future, premium payments will be expensed. At the end of the period the Group had liquid funds of SEK 1,410 M (3,163 including promissory notes relating to the sale of Boliden shares). Of the SEK 555 M increase in 1999, SEK 520 M consists of the holding of preference shares in Boliden Ltd. The return on these amounts to 5 percent. Trelleborg has undertaken not to sell its holding prior to the end of September 1999, without the approval of the issuing banks. Based on a pro forma balance sheet, Trelleborg's equity/assets ratio was 48.0 percent at the end of the period (53.9). Gross investments during the period amounted to SEK 205 M (163). ------------------------------------------------------------ Please visit for further information The following files are available for download: