TRELLEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
"Continuing stable performance"
“Trelleborg has once again reported a favorable quarter. The underlying operating profit grew strongly and the corresponding margin was the highest to date for a single quarter. Organic sales rose 5 percent year-on-year. The majority of geographic markets displayed positive organic growth and most of Trelleborg’s market segments performed favorably.
“Our continuous improvement efforts, combined with the strong market positions we command, have created a strong and stable base upon which we can generate value. The increased sales volumes in the quarter yielded high margins, from both an historical and seasonal perspective. During the quarter, we completed a technology acquisition that strengthens our offering in the growing offshore natural gas market. The pace of innovation remains high in the Group.
“Trelleborg recorded an unusually positive third quarter, which deviated to a certain extent from the seasonal variations normally experienced. This was partially attributable to favorable project deliveries that were non-recurring in nature. For the fourth quarter, our collective assessment is that demand will once again follow historical seasonal variations, albeit from higher levels in relation to past years. As before, market outlooks remain uncertain. We are monitoring economic developments closely and have a continued high level of preparedness to address fluctuating market conditions,” says Peter Nilsson, President and CEO.
Net sales for the third quarter of 2013 totaled SEK 5,306 M (4,961). Organic sales increased by 5 percent (decrease: 2). Effects of structural changes represented a positive 4 percent growth (0) and exchange-rate effects had a negative 2 percent impact (negative: 2).
Operating profit, excluding items affecting comparability and the participation in TrelleborgVibracoustic, rose by 30 percent to SEK 688 M (528), equivalent to an operating margin of 13.0 percent (10.6), the Group’s highest to date for a single quarter.
Items affecting comparability amounted to an expense of SEK 101 M (expense: 12), which comprised restructuring costs, and is in line with the information previously communicated.
Operating cash flow amounted to SEK 763 M (625).
Operating profit for the associated company TrelleborgVibracoustic, excluding items affecting comparability, amounted to EUR 31 M (20), corresponding to an operating margin of 7.4 percent (5.1).
Trelleborg’s participation in TrelleborgVibracoustic, excluding items affecting comparability, amounted to SEK 133 M before tax (78). Including items affecting comparability of 108 MSEK, the participation was SEK 25 M before tax (72).
Group in total
Consolidated net sales amounted to SEK 5,306 M (4,965).
Operating profit for the quarter increased to SEK 612 M (591).
Earnings per share for the quarter were SEK 1.40 (1.45)
Market outlook for the fourth quarter of 2013
Demand is expected to be on a par with the third quarter of 2013, adjusted for seasonal variations.
Invitation to presentation and telephone conference on October 23 at 10:30 a.m. CET
A presentation and telephone conference will be held on October 23 at 10:30 a.m. CET. The presentation will be held at Operaterrassen, Stockholm, Sweden. To participate in the telephone conference, call +46 8 5199 9355 (Sweden), +44 20 3364 5372 (U.K.) or +1 8557161596 (U.S.). Code: “Trelleborg”. The conference will also be broadcast on the Internet in real time. Visit our website at: www.trelleborg.com/en/Investors/Presentations for the Internet link and presentation materials.
Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative engineered solutions accelerate performance for customers in a sustainable way. The Trelleborg Group has annual sales of about SEK 21 billion in over 40 countries. The Group comprises five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. In addition, Trelleborg owns 50 percent of TrelleborgVibracoustic, a global leader within antivibration solutions for light and heavy vehicles, with annual sales of approximately SEK 14 billion in about 20 countries. The Trelleborg share has been listed on the Stock Exchange since 1964 and is listed on NASDAQ OMX Stockholm, Large Cap. www.trelleborg.com
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 23, 2013, at 07:45 a.m. CET.
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