TRELLEBORG, Sweden—Trelleborg A.B. has reported growth in the first quarter of 2018, with both net sales and earnings (EBITDA) up compared to the first three months of 2017.
Sales were up 3 percent to about $993 million for the three months to the end of March, while earnings rose 11 percent to $150 million for the period, Trelleborg reported April 25.
Commenting on the results, CEO and President Peter Nilsson said that despite the growth, the group's "organic performance" was dampened by challenging market conditions for some of its project businesses.
Additionally, "unusually harsh winter conditions" impacted some operations, Nilsson added.
The company's largest business area, Trelleborg Sealing Solutions, "performed well and reported its highest quarterly profit to date," Nilsson said.
Thanks to price adjustments, relatively stable raw material prices and the integration of Mitas Tyres, Trelleborg Wheel Systems noted "a clear improvement in profitability," Nilsson said.
However, the aftermarket business was impacted negatively by the long winter season in the northern hemisphere.
This, Nilsson said, "is deemed to have dampened the willingness of farmers to replace worn-out tires."
In the three months to end of March, Trelleborg's oil and gas operations remained under pressure amid challenging market conditions. Nilsson said he remains optimistic, though, noting that only a small increase in market activity could have positive impacts later in the year.
Without further elaborating, he also noted that the company's activities to "reposition" offshore oil and gas operations were "continuing as planned.".
Trelleborg Offshore & Construction business said in November that it was going through a major restructuring as part of which business president Fredrik Meuler stepped down from his position. Additionally, the company is "gradually discontinuing" the manufacturing of subsea buoys for drilling equipment in deep-water environments in Houston, Texas.
Production equipment will be transferred and consolidated to existing operations in Skelmersdale, England, where manufacturing focuses are on other types of deep-water buoys and engineered polymer systems.