STOCKHOLM, Sweden (April 17, 2009)—Trelleborg A.B. reported a sharp decline in sales and earnings for the three months ended March 31 because of a decline in demand, and its board has approved a $272.1 million rights issue.
Net sales in the first quarter of 2009 fell 14.8 percent to $812.5 million, and the firm's operating profits slipped almost 92 percent to $5.4 million.
The company said it generated more cash, however, because of a reduction in expenditures and stocks.
The share offering to existing stockholders will strengthen Trelleborg's financial position and increase its ability to improve its market positions, the company said. Adoption of the proposal is subject to a vote at the firm's annual meeting.