TRELLEBORG, Sweden (Feb. 11, 2009)—Trelleborg Wheels Systems S.p.A. reported 26 percent higher operating income for the year ended Dec. 31 as sales grew 14.2 percent to $562.7 million.
Trelleborg Wheel attributed the earnings growth, to $55.1 million or 9.8 percent of sales, to “healthy” volume growth, a high level of capacity utilization in agricultural tires and an improved product and price mix. Earnings were negatively affected by lower volumes in industrial tires and strong currency fluctuations in several export markets.
Sales growth is attributed entirely to a strong global trend for large agricultural tires, Trelleborg said. Demand for industrial tires, on the other hand, declined sharply as a result of the weaker industrial economy.
Sales of agricultural tires, particularly large dimensions, continued to increase mainly as a consequence of the continued strength of underlying markets and effective marketing efforts. Trelleborg claimed market share gains for both agricultural and industrial tires.
Trelleborg Wheel is one of four business areas in which parent Trelleborg A.B. is active. Its results were in stark contrast to those of the parent company, which reported a net loss of $39.2 million and a 78.1-percent plunge in operating income to $56.7 million. Sales edged up 0.9 percent to $4.74 billion.