Information prior to Interim report for first quarter of 2007
Prior to publication of its interim report for the first quarter of 2007, Trelleborg AB has provided the following information.
Action program within Trelleborg Automotive:
As announced earlier, an action program is being implemented that is mainly related to the Trelleborg Automotive business area. The areas of the action program that affect operating profit for the first quarter are primarily attributable to the closure of a plant in West Thurrock in the UK and organizational changes that are in progress to reduce costs in Europe. These measures, combined with the effects of the impairment of asset values, are expected to have an impact on consolidated operating profit for the first quarter totaling approximately SEK 190 M before tax.
Nonrecurring revenue from sale of property:
In January 2007, Trelleborg signed an agreement with Skanska for the sale of land in the Södra Hammarbyhamnen area of Stockholm. The sale price amounted to SEK 330 M based on development potential. Payment of SEK 100 M is to be made at the time of transfer and, when a detailed development plan gains legal approval, an additional payment will be made that can vary depending on the development potential. In 2006, the book value of the property amounted to about SEK 80 M. The transfer payment will affect cash flow in an amount of SEK 100 M and will result in a capital gain of about SEK 20 M for Trelleborg. This will be reported as nonrecurring revenue in the first quarter of 2007.
Total effect of action program and nonrecurring revenues:
In total, the above entails that the net of the action program and nonrecurring revenues that will be charged to the first quarter’s operating profit is expected to be approximately SEK 170 M before tax and approximately SEK 135 M after tax.