Nine-month report january-september 2006
Positive trend continues in operations outside automotive industry
Sales in the Trelleborg Group continued to grow during the third
quarter. Net sales increased by 8 percent during the quarter and by 13
percent during the first nine months, driven by organic growth and
acquisitions.
However, a positive sales and profit trend for operations outside the
automotive industry could not fully offset such significant negative net
effects as the continued strong increases in costs for raw materials and
the prevailing market conditions caused within automotive-related
operations. The quarter’s operating profit for the Group’s continuing
operations declined to SEK 364 M (413).
“The trend in our operations outside the automotive industry has
remained positive, despite the historically high price levels of raw
materials. Within automotive-related operations, high raw-material costs
and production cuts among our main customers are placing considerable
demands on forceful measures to enhance the cost structure,” says
President and CEO Peter Nilsson.
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Key ratios
· Net sales increased during the third quarter to SEK 6,306 M (5,846)
and to SEK 20,342 M (17,988) during the first nine months.
Profit for the period: Third quarter First nine months
Continuing operations SEK 201 M (276) SEK 771 M (868)
Discontinued operations SEK 0 M (8) SEK 4 M (16)
Total profit for the period SEK 201 M (284) SEK 775 M (884)
· Earnings per share amounted to SEK 2:20 (3:10) in the third quarter
and SEK 8:45 (9:70) for the first nine months.
· Operating key ratios for continuing operations, excl.
restructuring costs and impairment losses:
Third quarter First nine months
Operating profit SEK 364 M (413) SEK 1,339 M (1,343)
Profit before tax SEK 285 M (381) SEK 1,116 M (1,193)
Profit for the period SEK 201 M (276) SEK 788 M (868)
Earings per share SEK 2:20 (3:00) SEK 8:60 (9:50)
Significant events
•The Group’s strategy to grow through value-adding acquisitions within
prioritized segments continued during the third quarter. The Group
signed agreements with, or completed the acquisition of five companies,
the largest of which was the acquisition of Reeves Brothers Inc., which
provides the company with a leading position within polymer-coated
composite fabrics.
•Business Area President of Trelleborg Automotive and Executive Vice
President George Caplea left the Group to assume a new position in
another non-competing company. CEO Peter Nilsson will temporarily assume
responsibility for the business area, at the same time as an additional
focus on enhanced global processes is being implemented.
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Outlook
• Within industry in general, continued good growth is forecasted.
Demand is expected to remain very strong within the aerospace industry
and oil and gas segments.Within automotive-related operations,
the announced production cuts, mainly
among North American customers, are expected to have an adverse impact.
High raw-material prices are expected also in the fourth quarter.
Invitation to telephone conference, Oct 27 at 09:30 CET
A telephone conference will be held on Oct 27 at 09:30 CET. Call +44
(0)20 7162 0125 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 “723329”.
Calender
Year-end report 2006
February 13, 2007
Annual General Meeting and three-months interim
report
April 25, 2007
Contacts
Bo Jacobsson, Chief Financial Officer
Phone: +46 (0)410-670 99, Mobile: +46 (0)70-685 65 60, e-mail:
bo.jacobsson@trelleborg.com
Mikael Byström, Senior Vice PresidentInvestor Relations
Phone: +46 (0)410-670 37, Mobile: +46 (0)708-55 21 69, e-mail:
mikael.bystrom@trelleborg.com
Viktoria Bergman, Senior Vice President Corporate Communications
Phone: +46 (0)410-670 94, Mobile: +46 (0)708-47 57 33, e-mail:
viktoria.bergman@trelleborg.com