Trelleborg reports 'solid' end to record 2023

TRELLEBORG, Sweden—Trelleborg A.B. has posted a 4-percent year-on-year increase in fourth quarter sales to $794 million—largely due to acquisitions.

Earnings (EBITA, excluding items affecting comparability) lifted 6 percent year-on-year to $134 million, corresponding to an operating margin of 16.9 percent, the group said in a Feb. 2 press release.

"Both sales and EBITA, with corresponding margin, were the best to date for a fourth quarter and represented a solid end to the year," Trelleborg said.

For full-year 2023, net sales from continuing operations increased 14 percent year-on-year to a record $3.2 billion. And full-year earnings (EBITA, excluding items affecting comparability) increased 13 percent year-on-year percent to $566 million, another record.

The earnings gains reflected 2 percent from organic growth, 7 percent from structural changes and 5 percent from currency movements, the company said.

In the fourth quarter, sales at Trelleborg Industrial Solutions fell marginally as lower sales in Asia and weaker construction markets offset gains in marine and automotive markets.

Trelleborg Sealing Solutions (TSS) saw a slight rise in organic sales on pricing adjustments and improved automotive and aerospace markets in final quarter 2023. The improvements at TSS, however, were largely countered by weaker sales to general industry in Europe and North America and to healthcare and medical customers.

Regarding prospects for 2024, Trelleborg's management said:

"We find ourselves in a somewhat cooler macro environment compared to the beginning of 2023," Trelleborg management said in regards to prospects for 2024.

"Our general assessment in the current situation is that demand in the first quarter will be on a par with the fourth quarter," President and CEO Peter Nilsson said.

Nevertheless, Trelleborg stated that it would "continue to invest at a high rate" in 2024, focusing on growth areas, including aerospace, healthcare and medical, and semiconductors.