TRELLEBORG, Sweden—Trelleborg A.B. has posted second quarter sales—from continuing operations—about level with the prior-year period at about $808 million (SEK 8.711 billion).
The performance, reported July 18, reflected a 1-percent year-on-year increase in organic sales, offset by a similar-level decline in revenues due to structural changes.
Earnings (EBITA, excluding items affecting comparability) increased 2 percent year-on-year to $148.5 million—representing a "best-to-date performance" for a single quarter.
The group performed "well in the second quarter... after a few quarters in which we reported a slight organic decline," President and CEO Peter Nilsson said.
Organic sales for Trelleborg Industrial Solutions (TIS) "slowed marginally" amid weak demand in the construction market and several industrial segments. TIS achieved growth in the automotive and energy sectors, however, and benefited from new orders for major infrastructure projects.
Organic sales at Trelleborg Medical Solutions increased two percentage points: helped by sales to the North American med-tech market, while inventory trend made the third quarter outlook "slightly more positive."
Trelleborg Sealing Solutions reported a slight decline in organic sales to the general industry sector, but increased deliveries to the automotive and aerospace industries.
For the group overall, Nilsson said: "Our general assessment of the current situation is that demand in the third quarter will be somewhat higher than in the second quarter."
Trelleborg's margin target of 20 percent, he added, "is within reach as the markets improve and the synergies from previous acquisitions are realized according to plan."