STOCKHOLM, Sweden—Trelleborg A.B. posted stable operating profits and retained its operating margin at the same level as during the strong third quarter of 2013, according to President and CEO Peter Nilsson.
The company recorded third quarter net sales of about $774 million, a 6 percent increase from 2013's third period results. Acquisitions contributed 2 percent to that total while organic sales declined 2 percent.
Operating profit, excluding Trelleborg/Vibracoustic, rose 6 percent to about $100.6 million. Operating profit for TrelleborgVibracoustic rose 26 percent to $5.4 million in the quarter.
“We achieved these healthy earnings despite weaker market trends for several market segments and thus a slight fall-off in organic growth,” Nilsson said in the company's interim third quarter report.
He said the third quarter was characterized by major variations among Trelleborg's market segments. “The common feature was, however, that we maintained our intense focus on cost control, cash flow and value-generating measures in a more challenging market,” he said. “We once again proved the strength of our business model.”
The outlook for the market is affected by increasing uncertainty, particularly in Europe, the executive said.
“Our overall assessment is, however, that demand for the fourth quarter will be on par with the third quarter,” Nilsson said. “As before, we are carefully monitoring the economic developments and we are continuing to maintain high preparedness to address fluctuating market conditions.”