Increased sales during second quarter
Growth in the Trelleborg Group was good during the second quarter. Net sales increased by 11 percent during the quarter and by 16 percent during the first six months, driven by organic growth (5.5 percent) and acquisitions.
However, increased sales could not fully offset the mainly strong increases in costs for raw materials. The quarter’s operating profit for the Group’s continuing operations, excluding restructuring costs and impairment losses, fell to SEK 507 M (538). For the six-month period, profit grew slightly to SEK 975 M (930).
“We are continuing our strategic expansion with growth in attractive segments. In the short term, we will be burdened by increases in the cost of raw materials. Accordingly, we are prioritizing price increases and efficiency-enhancing measures in all areas of the Group,” says President and CEO Peter Nilsson.
· Net sales increased during the second quarter to SEK 7,044 m (6,348)
and to SEK 14,039 m (12,142) for the first six months.
· Profit for the period: Second quarter First six months
· Continuing operations sek 305 m (351) sek 570 m (592)
· Discontinued operations sek -31m (4) sek 4 m (8)
· Total profit for the period sek 274 m (355) sek 574 m (600)
· Earnings per share amounted to sek 2:95 (3:90) in the second quarter
and sek 6:25 (6:60) for the first six months.
· Operating key ratios for continuing operations, excl. restructuring
costs and impairment losses:
Second quarter First six months
· Operating profit sek 507 m (538) sek 975 m (930)
· Profit before tax sek 431 m (481) sek 831 m (812)
· Profit for the period sek 305 m (351) sek 586 m (592)
· Earings per share sek 3:35 (3:85) sek 6:40 (6:50)
· The Trelleborg Group continues to make acquisitions in line with the Group’s strategy of growth within attractive segments, with favorable growth and profitability potential, and where the three primary customer needs of sealing, damping and protecting have a principal role. During the report period and shortly afterward, the Group signed contracts for the acquisition of four companies, with total sales of approximately SEK 300 M.
· As part of the Group’s portfolio optimization and focus on selected segments, the Goodall Rubber Company was divested during the second quarter. The capital loss amounted to SEK 76 M.
· The outlook remains unchanged, with anticipated continued market growth in the Group’s seven principal markets in line with the first six months of 2006. Accelerated prices for raw materials are expected to lead to continued cost pressure during the third quarter of 2006.
Invitation to telephone conference, July 19 at 09:00 CET
A telephone conference will be held on July 19 at 09:00 CET. Call +44 (0)20 7162 0025 and state the password “Trelleborg.” Presentation materials will be available at www.trelleborg.com from about 30 minutes prior to the commencement of the conference. You can also listen to a recorded version during five days after the Conference Call on +44 20 7031 4064, code “710390”.
Interim report January-September 2006 October 27, 2006
Year-end report 2006 February 13, 2007