TRELLEBORG, Sweden—Trelleborg A.B. has reported a 3 percent increase in net sales for the third quarter of 2017 to $874 million, while operating profit (EBIT, excluding items affecting comparability) rose 1 percent to $110 million.
Operating profit for the three months to Sept. 30, reached its highest level for a third quarter, the Swedish company reported in an Oct. 27 release. This, it noted. was despite weakness in the oil & gas market.
Operating margin stayed on par a year ago, as a result of "stringent cost control and strong market positions," the results statement continued.
"We have continuously worked to compensate for the higher raw material prices that prevailed for much of the year," Trelleborg stated. "During the latter part of the quarter, we achieved compensation for raw material prices."
The company was also encouraged by continued recovery in the European agricultural sector—especially the OEM segment for agricultural machinery. However, the Trelleborg-tires-farmequivalent North American market remained weak despite an upward volume trend.
A "robust trend" was noted in the automotive industry, though aerospace industry deliveries declined slightly—Trelleborg linking the dip to "slightly restrained" production rates at some aircraft manufacturers due to temporary supply-chain issues.
Regionally, Trelleborg reported business growth at its highest in Asia, while also "healthy" in western Europe, North America and South America in the third quarter.
Sales were "slightly weaker" in central Europe, as Trelleborg focused on preparing manufacturing units from the CGS acquisition for integration with existing business areas. This process, it said, will take place from early next year.
The integration of the acquired CGS units has largely developed satisfactorily and a number of initiatives have been accelerated during the quarter," Trelleborg commented. "Investments continue to create a more efficient long-term structure. "
Looking to the year-end, Trelleborg forecast that final-quarter demand would be match or slightly surpass that in the third quarter.
"As previously, we are carefully monitoring economic developments and continue to maintain a high level of preparedness to manage fluctuating market conditions", says Peter Nilsson, president and CEO of Trelleborg.