"Stable earnings in a challenging environment"
“Trelleborg posted stable operating profit and retained its operating margin at the same high level as during the strong third quarter of 2013. Net sales increased by 6 percent compared with the year-earlier period, and acquisitions contributed to 2 percent. We achieved these healthy earnings despite weaker market trends for several market segments and thus a slight fall-off in organic growth.
“The third quarter was characterized by major variations among the market segments in terms of demand for our products and solutions. The common feature was however that we maintained our intense focus on cost control, cash flow and value-generating measures in a more challenging market. We once again proved the strength of our business model.
“The market outlook is affected by an increasing uncertainty, particularly in Europe. Our overall assessment is however that demand for the fourth quarter will be on par with the third quarter. As before, we are carefully monitoring the economic developments and we are continuing to maintain high preparedness to address fluctuating market conditions”, says Peter Nilsson, President and CEO.
Net sales for the third quarter of 2014 increased by 6 percent (7) and totaled SEK 5,614 M (5,306). Organic sales declined by 2 percent (increase: 6). Effects of structural changes contributed 2 percent (pos: 3) while the effects of exchange-rate movements were a positive 6 percent (neg: 2).
Operating profit, excluding the participation in TrelleborgVibracoustic and items affecting comparability, rose 6 percent to SEK 730 M (688), equivalent to an operating margin of 13.0 percent (13.0).
Items affecting comparability for the quarter amounted to an expense of SEK 41 M (expense: 101), which was fully attributable to previously announced restructuring programs.
Operating profit in the quarter for TrelleborgVibracoustic, excluding items affecting comparability, rose 26 percent to EUR 39 M (31). This corresponded to an operating margin of 8.8 percent (7.4).
Trelleborg’s participation in TrelleborgVibracoustic amounted to SEK 155 M before tax (25). The participation includes items affecting comparability amounting to an expense of SEK 20 M (expense: 109) and is in line with communicated full-year levels.
Earnings per share rose 54 percent to SEK 2.15 (1.40).
Operating cash flow amounted to SEK 899 M (763), including a dividend of SEK 131 M from TrelleborgVibracoustic.
Market outlook for the fourth quarter of 2014
Demand is expected to be on a par with the third quarter of 2014, adjusted for seasonal variations.
For further information, please contact:
Media: Vice President Media Relations Karin Larsson, +46 (0)410 67015, +46 (0)733 747015, email@example.com
Investors/analysts: Vice President IR Christofer Sjögren, +46 (0)410 67068, +46 (0)708 665140, firstname.lastname@example.org
This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on Wednesday, October 22, 2014, at 07:45 CET.