Trelleborg positioned for continued expansion
Trelleborg Captial Markets Day 2002: Trelleborg positioned for continued expansion With its leading positions, good earnings capacity in relation to the current market conditions and experienced organization, the Trelleborg Group is poised for further growth. This was underlined by Group CEO Fredrik Arp at today's Capital Markets Day. Fredrik Arp also said that he expects average growth within Trelleborg's core business areas, which since 1999 has totaled about 20%, to continue. "As recently as last week, the Group was able to announce the acquisition of Seaward in the United States, and is currently involved in a number of other discussions regarding further acquisitions," said Arp. The CEO also noted that market prospects for industry are still uncertain and that Trelleborg has a high degree of preparedness to exploit any upturn and to handle a continuation of the weak trend. Arp pointed to potential margin improvements of around 1% in all of the Group's business areas within one to two years, given stable market conditions. Within Trelleborg Automotive these improvements can be seen in the continued successful integration of BTR and LACD. In addition, Trelleborg Automotive's President George Caplea described new product innovations, including ADM noise-control material for vehicles, for which a new production plant was opened during the summer in Kalmar, Sweden. Within Trelleborg Wheel Systems, the restructuring of operations is continuing in accordance with the program announced earlier. Capacity has now been adapted to the lower level of demand, with a more efficient production structure as a result. The trend of earnings for this business area has also improved. Business Area President Maurizio Vischi also noted signs of a slightly better market scenario in future. Georg Brunstam, President of the Trelleborg Engineered Systems Business Area, reported a positive trend of earnings as a result of the rationalization measures implemented and a more focused product portfolio. The acquisition of Seaward in the US a week ago, which makes Trelleborg the global leader in the marine fender systems segment of the prioritized market area Infrastructure/Construction, further strengthens the product portfolio. Within Trelleborg Building Systems, Business Area President Peter Suter was also able to show a positive trend of earnings, primarily as a result of more efficient marketing efforts. In addition to new and improved waterproofing materials and sealing strips, Suter presented plans for an increased presence in China and Russia. He also touched on the strategic alliances Trelleborg has entered into with Isola in Norway and JP Stevens in the United States, both of which consolidate Trelleborg's position in the Nordic region and Europe. Retiring Chief Financial Officer Jan Björck, who is being succeeded by acting CFO Bo Jacobsson, noted that the Group is ready to continue its growth. Trelleborg has the positions, know-how and financial capacity to continue its expansion through acquisitions. The new CFO will formally take over on December 2, 2002. Following this date, Jan Björck will be responsible for certain development projects through February 2003. Further information can be obtained from Trelleborg's Senior Vice President, Corporate Communications, Mikael Byström, +46 (0) 410-67 037 or +46 708-55 21 69 Trelleborg is a global industrial group. Operations are based on spearhead competence within polymer materials and a high level of industrial know-how, combined with functional solutions and systems designed to meet the needs of our customers. The Trelleborg Group has annual sales of SEK 18 billion, with approximately 15,000 employees in 40 countries. Trelleborg consists of four business areas: Trelleborg Automotive, Trelleborg Wheel Systems, Trelleborg Engineered Systems and Trelleborg Building Systems. The Trelleborg share has been quoted on the A list of the Stockholm Exchange since 1964. www.trelleborg.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/11/20/20021120BIT00870/wkr0001.doc http://www.waymaker.net/bitonline/2002/11/20/20021120BIT00870/wkr0002.pdf