Year-end report January – December 2006
Strong trend for operations outside automotive industry
Trelleborg’s growth was favorable in 2006, with an increase in sales of 13 percent. Organic growth was 6 percent for the full year and 9 percent for the fourth quarter.
Operations outside the automotive industry developed favorably during the year and three out of four business areas increased operating profit. The Group’s non-restricted cash flow remained strong.
Presence in key growth markets was reinforced, with favorable development in such regions as Asia and Eastern Europe. The focusing of operations continued with a number of acquisitions within prioritized areas, resulting in a positive impact on consolidated earnings.
Prices for the Group’s principal raw materials reached historically high levels in 2006.
“Our continued growth and focusing of operations on attractive segments, as well asthe successful implementation of the action program is a priority,” says President and CEO Peter Nilsson.
· Net sales increased during the fourth quarter to SEK 6,945 M (6,182)
and to SEK 27,284 M (24,170) for the full year.
· Net profit: Fourth quarter January-December
· Continuing operations Loss of SEK 8M (profit:284) SEK 763 M (1,152)
· Discontinued Loss of SEK 1 M (profit: 9) SEK 3 M (25)
· Total net profit Loss of SEK 9 M (profit:293) SEK 766 M (1,177)
costs/WD SEK 285 M (-) SEK 304 M (-)
· Earnings per share amounted to a loss of SEK 0:15 (profit: 3.20) in
the fourth quarter and SEK 8.30 (12.90) for the full year.
Operating key ratios
· Continuing operations, excl. restructuring costs and impairment
Fourth quarter January-December
· Operating profit SEK 476 M (395) SEK 1,815 M (1,738)
· Profit before tax SEK 386 M (337 SEK 1,502 M (1,530)
· Net profit SEK 279 M (284) SEK 1,067 M (1,152)
· Earings per share SEK 3.05 (3.10) SEK 11.65 (12.60)
Significant events during the fourth quarter
• During the quarter, the acquisition of Reeves was concluded, as well as two smaller acquisitions.
• A decision was made concerning the relocation of industrial production from Hartville, Ohio, to facilities in Sri Lanka. It was also decided to relocate manufacturing of protective products from Sweden to Lithuania.
• During the fourth quarter, a vigorous action program was initiated for the Automotive business area, comprising approximately SEK 875 M, with the aim of improving profitability in the business area, see table on page 4.
Outlook for first six months of 2007
• For general industry, demand is not expected to decline, while the very strong demand within the aerospace and oil/gas segments will continue. Cutbacks in production, mainly among North American customers, are expected to have adverse effects on automotive-related operations.
Board proposes to Annual General Meeting dividend of SEK 6.00 (5.50)
• The Board and President propose a cash dividend of SEK 6.00 (5:50).
Invitation to telephone conference, February 13 at 9:30 a.m. CET
A telephone conference will be held on February 13 at 9:30 a.m. CET. Call +44 (0)20 71 62 01 25 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. The conference will be recorded and will be available for five days following the conference on tel. +44 (0)207-031 40 64, code 736017.
Annual General Meeting
and interim report for first quarter 2007 April 25, 2007
Six-month report 2007 July 24, 2007
Bo Jacobsson, Chief Financial Officer
Phone: +46 (0)410-670 99, Mobile: +46 (0)70-685 65 60, e-mail: email@example.com
Mikael Byström, Senior Vice President, Investor Relations
Phone: +46 (0)410-670 37, Mobile: +46 (0)708-55 21 69, e-mail: firstname.lastname@example.org
Viktoria Bergman, Senior Vice President, Corporate Communications
Phone: +46 (0)410-670 94, Mobile: +46 (0)708-47 57 33, e-mail: email@example.com