Home / Knowledge / News / Textiles / Trelleborg Q2 organic sales slip marginally
Trelleborg Q2 organic sales slip marginally
22
Jul '14
Trelleborg announces interim report for second quarter from April to June 2014.
 
Second quarter
Net sales for the second quarter of 2014 increased by 2 percent (0) and totaled SEK 5,725 M (5,628). Organic sales declined by 1 percent (increase: 2). Effects of structural changes contributed 0 percent (pos: 4) while the effects of exchange-rate movements were a positive 3 percent (neg: 6).
 
Operating profit, excluding the participation in TrelleborgVibracoustic and items affecting comparability, rose by 11 percent to SEK 802 M (723), equivalent to an operating margin of 14.0 percent (12.8), the Group’s highest ever for a single quarter.
 
Items affecting comparability amounted to an expense of SEK 99 M (expense: 204), which was fully attributable to previously announced restructuring programs. The year-earlier period included an expense of SEK 155 M associated with process and dispute costs. 
 
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 8.9 percent (6.9), the highest to date for the company for a single quarter. 
 
Trelleborg’s participation in TrelleborgVibracoustic amounted to SEK 42 M before tax (97). The participation includes items affecting comparability in the negative amount of SEK 126 M (neg: 11) that were mainly attributable to the previously communicated restructuring projects. 
 
Earnings per share rose 38 percent to SEK 1.95 (1.41). Operating cash flow amounted to SEK 539 M (531).
 
Market outlook for the third quarter of 2014
Demand is expected to be on a par with the second quarter of 2014, adjusted for seasonal variations.
 
Peter Nilsson, President and CEO, comments, “Trelleborg continued to improve earnings. Both operating profit and the operating margin are the highest levels ever for the Group for a single quarter. The Group also reported a stable cash flow.
 
“Net sales rose 2 percent while organic sales declined 1 percent. Sales performance was favorable in all geographic markets except for Europe. The negative trend in Europe was primarily due to a weaker OEM market for agricultural tires, delays of deliveries of projects and ongoing repositioning to more value-creating niches in certain product segments.
 
“We maintained our focus on value creation and generating growth via organic initiatives and bolt-on acquisitions. During the quarter, we decided on an investment in a production facility for agricultural tires in the U.S., which will provide us with local presence in North America and a global position in the market. Furthermore, Trelleborg acquired a company in Turkey, which consolidates our leading market position in industrial hoses.
 
“As yet, we have not received any indication of a general improvement in the demand situation, and we believe that third-quarter demand for the Group as a whole will be on par with the second quarter of the year. We are continuing to carefully monitor the economic developments and are maintaining high preparedness to address fluctuating market conditions.”

Trelleborg Group


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.1%
No
12.7%
Skip
11.3%

Total Votes: 71

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
28.2%
Skip
9.9%

Total Votes: 71

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.9%
No
9.9%
Skip
4.2%

Total Votes: 71

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
76.1%
No
11.3%
Skip
12.7%

Total Votes: 71


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search