Year-end report for 1999

YEAR-END REPORT FOR 1999


Profit after net financial items SEK 1,550 M (616)
and earnings per share of SEK 8.60 M (4.20)

Profit after net financial items (excluding non comparable items) SEK 974
M (599) and earnings per share (excluding non comparable items) of SEK 6.35
(4.05)

51 percent of Distribution sector divested

Acquisition of Invensys AVS

Program with right to repurchase up to 10 percent of shares proposed

Proposed dividend of SEK 3.25 (2.00)

GROUP

Net sales
The Group's net sales for 1999 totaled SEK 23,345 M (25,041). The
decrease was due to the divestment during the
 year of most of the operations within the Other Activities sector and the
sale on November 30, 1999, of 51 percent of
the Distribution sector. The Group's Industrial sector posted a 12-percent
increase in net sales to SEK 8,701 M,
primarily as a result of acquisitions but also through organic growth,
mainly in the Trelleborg Automotive business area.


Earnings
Group operating profit for the year totaled SEK 1,551 M (736).
Non comparable items amounted to SEK 576 M. The divestment of 51 percent
of the Distribution sector generated a gain of about SEK 950 M. The
divestments made within the Other Activities Sector earlier during the
year, primarily the holdings in BPA and Sorb Industri, contributed a gain
of about SEK 300 M. Provisions of SEK 259 M for the restructuring
program in the Industrial sector and the write-down of real estate in an
amount of SEK 210 M, closure costs of SEK 170 M in the Other Activities
sector and costs for other restructuring items totaling SEK 35 M are
included among non comparable items.

The Group's financial net was an expense of SEK 1 M. The financial net
was positively affected by exchange-rate gains. Cash inflow in connection
with the sale of 51 percent of the Distribution sector generated a
positive financial net during December.

Profit after financial income and expense amounted to SEK 1,550 M (616).
Excluding non comparable items, profit for the year amounted to SEK 974
M, compared with SEK 599 M in 1998, an improvement of approximately
63 percent.

Tax charges for the year totaled SEK 543 M, of which SEK 316 M was be
made available.

At the end of the year, the equity/assets ratio was 66.4 percent (54.3).
At year-end, shareholders' equity per share totaled SEK 78.50 and the
return on shareholders' equity was 10 percent (4.5).

The Group's holding of common stock in Boliden was spun off to
shareholders in accordance with the decision taken at the 1999 Annual
General Meeting. This corresponded to SEK 6.45 per Trelleborg share.

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