TRELLEBORG, Sweden (March 31, 2009)—Trelleborg A.B.'s rubber-related units have posted solid results for 2008 despite the economic downturn and falling demand.
However, the company said that overall, the rapid decline in the market in the fourth quarter of 2008 had a significant impact on Trelleborg. Sales for the year amounted to $3.8 billion, up 0.9 percent from 2007, and operating profit dropped 21 percent.
The company's Sealing Solutions unit, a supplier of precision rubber seals for the industrial, aerospace and automotive industries, reported net sales were up to $732 million, a 3 percent increase from 2007.
Operating profit was up 5.8 percent from 2007 to $108 million, and EBITDA was up 5.9 percent to $131 million, the company reported.
The company's Sealing Solutions unit recorded zero organic growth during 2008, the company said, with both operating profit and the operating margin being reinforced by the shift toward more profitable segments, Trelleborg said.
Claus Barsoe, Trelleborg Sealing Solutions president said the trend in the company's industrial core business was favorable, and performance in Southeast Asia was very strong. He said Trelleborg benefited from reductions in exposure to the automotive industry before the impact of the financial crisis was felt.
Trelleborg Wheel Systems, consisting of agricultural and forest, and industrial tires, recorded net sales of $450.5 million, a 14 percent jump from 2007. Operating profit was up 26 percent over 2007.
The unit reported a strong global trend for large agricultural tires in 2008 and recorded organic growth of nearly 11 percent, Trelleborg said.
The consolidation of industrial tire production in Sri Lanka will lead to fully operational production during the first six months of 2009, the company said. Trelleborg said growth of 14 percent was recorded during 2008 in Trelleborg Wheel Systems.