TRELLEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
Trelleborg (STO:TRELB)
"Good start to the year"
“The first quarter was a good one for Trelleborg. Once again, both operating profit and operating margin set new all-time records, reaching the highest levels ever for the Group in a single quarter. The Group reported organic sales growth of 2 percent, with variation among our business areas.
“We can see that our cost and capital-efficiency programs are continuing to yield favorable results, and the integration and development of our acquired companies are progressing satisfactorily.
“Efforts to generate growth via organic initiatives and bolt-on acquisitions are ongoing. We are also focusing intently on making it easy for customers to do business with us. To succeed in this endeavor, we must be innovative and at the forefront in terms of the use of new technologies in our interaction with customers. Combined with a focus on innovation in several dimensions, this forms the basis for increased value creation and our position as a premium partner to our customers.
“The market outlook remains difficult to predict. As yet, we have not received any indication of a general improvement in the demand situation. For the second quarter, our overall assessment is that demand will be on par with the first quarter of the year. We are continuing to carefully monitor the economic developments and are maintaining high preparedness to address fluctuating market conditions,” says Peter Nilsson, President and CEO.
First quarter
Net sales for the first quarter of 2014 increased by 4 percent (decrease: 6) and totaled SEK 5,594 M (5,394). Organic sales increased by 2 percent (decrease: 5). Effects of structural changes represented positive growth of approximately 1 percent (4) while the effects of exchange-rate movements were a positive 1 percent (neg: 5).
Operating profit, excluding the participation in TrelleborgVibracoustic and items affecting comparability, rose by 22 percent to SEK 779 M (639), equivalent to an operating margin of 13.9 percent (11.8), the Group’s highest ever for a single quarter.
Items affecting comparability amounted to an expense of SEK 18 M (expense: 37), which was fully attributable to previously announced restructuring programs.
Operating profit in the quarter for TrelleborgVibracoustic, excluding items affecting comparability, rose 38 percent to EUR 39 M (28), corresponding to an operating margin of 8.6 percent (6.6).
Trelleborg’s participation in TrelleborgVibracoustic, including negative items affecting comparability of SEK 27 M (neg: 11), amounted to SEK 133 M before tax (110).
Earnings per share rose 27 percent to SEK 2.29 (1.81).
Operating cash flow amounted to SEK 367 M (1).
Market outlook for the second quarter of 2014
Demand is expected to be on a par with the first quarter of 2014, adjusted for seasonal variations.
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, April 23, 2014, at 13:00 CET.
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