Interim report April - June 2010
“Demand during the quarter continued to improve in the majority of our segments and order book levels are favorable. We continue to improve our market positions and build a stronger and more efficient Trelleborg.
A strong organic growth of 21 percent and an efficient cost structure were some of the factors behind the exceptionally strong trend in the Group’s margins. The EBITDA margin improved and was 13.3 percent for the quarter, compared to 8.6 percent in the year-earlier period, and 11.5 percent in the first quarter of 2010. At the same time we have had a good cash flow generation.
We will continue to focus the business and increase our presence in selected, profitable segments and in expanding geographic markets. As part of this process, we divested part of the Trelleborg Automotive business area during the quarter,” says President and CEO Peter Nilsson.
Net sales, including discontinued operations, increased to SEK 7,814 M (6,867). Profit for the period, including discontinued operations and accounting capital loss, increased to SEK 274 M (46).
Further focusing of operations through the divestment of Fluid Solutions, which was part of the Trelleborg Automotive business area.
Fluid Solutions is recognized as a discontinued operation in this report.
All comparative figures have been restated to reflect this.
Continuing operations:
Net sales increased to SEK 7,430 M (6,500).
Operating profit rose to SEK 675 M (188).
Items affecting comparability amounted to an expense of SEK 50 M (expense: 91).
Earnings per share increased to SEK 1.60 (0.35).
Operating cash flow was SEK 818 M (958).
Free cash flow was SEK 591 M (653).
April – June 2010, in parenthesis the same period 2009
SEK M
Continuing operations
Net sales 7,430 (6,500)
Operating profit 675 (188)
Profit for the period 440 (86)
Earnings per share, SEK 1) 1.60 (0.35)
Operating profit excl.
items affecting comparability 725 (279)
Earnings per share, SEK excl.
items affecting comparability 1) 1.75 (0.65)
January – June 2010, in parenthesis the same period 2009
SEK M
Continuing operations
Net sales 14,104 (13,058)
Operating profit 1,153 (269)
Profit for the period 739 (211)
Earnings per share, SEK 1) 2.70 (1.00)
Operating profit excl.
items affecting comparability 1,230 (374)
Earnings per share, SEK excl.
items affecting comparability 1) 2.90 (1.35)
1) In periods before June 2009, following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares.
Market outlook for the third quarter of 2010.
Overall, demand is expected to remain in line with or slightly better than the second quarter of 2010, adjusted for seasonal variations.
Invitation to telephone conference on July 21 at 9:30 a.m.
A telephone conference will be held on July 21 at 9:30 a.m. To participate in the telephone conference, call +46 (0)8-5051 3643 or +44 20 7806 1968 and state the code 4651733 or the password “Trelleborg”. The conference will also be broadcast in real time on the Internet.
Visit our website at www.trelleborg.com/en/Investors/Presentations for Internet link and presentation materials.
Calendar
Interim Report July-September October 28
Capital Markets Day (Stockholm) November 24
Full year report 2010 February 15, 2011
For further information, please contact:
Investors/analysts
Conny Torstensson, VP Investor Relations
Tel: +46 (0)410 – 670 70
Mobile: +46 (0)734 – 08 70 70.
E-mail: conny.torstensson@trelleborg.com
Media
Mikael Sjöblom, VP Media Relations
Tel: +46 (0)410 – 670 15
Mobile: +46 (0)733 – 74 70 15
E-mail: mikael.sjoblom@trelleborg.com
This report contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors.
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, July 21, 2010 at 7:45 a.m.