TRELLEBORG, Sweden—Trelleborg Group has had a "good start to the year" with double-digit gains in sales and earnings, but it expects growth to slow down compared to a strong 2022.
Earnings (EBITDA) rose 20 percent year-on-year to $180 million during the first quarter, on 23-percent higher sales of about $850 million, Trelleborg announced April 27.
According to the Swedish group, sales were the highest to date for a quarter, reflecting a 7-percent increase in organic growth.
During the period, Trelleborg President and CEO Peter Nilsson noted a "balanced" cost inflation, although operating margin fell to 16.2 percent, from 17.3 percent reported the year before.
Nilsson linked the lowered profitability to the acquisition and ongoing integration of the Plymouth, Minn.-based Minnesota Rubber & Plastics, which was not part of the group last year.
Once integrated, Trelleborg expects Minnesota Rubber & Plastics to achieve synergies and yield "gradually higher profitability over the next few years."
Over the first quarter, Trelleborg Industrial Solutions (TIS) reported healthy organic sales growth of 16 percent to $371 million, while segment EBIT rose 20 percent to $51.6 million.
Here, LNG-related and marine solutions "grew considerably" while deliveries to the automotive and aerospace industries saw strong growth, said Nilsson.