TRELLEBORG, Sweden—Trelleborg A.B. has reported a 6.4 percent year-on-year decline in earnings (EBITDA) for the third quarter of 2019, despite higher sales.
EBITDA, excluding items affecting comparability, fell to $117 million on 6 percent higher sales of SEK $911.1 million, Trelleborg said in its Oct. 24 earnings report.
Over the nine-month period, earnings fell 1 percent to SEK3.9 billion on 7 percent higher sales of SEK27.5 billion.
CEO and President Peter Nilsson said the quarter saw a weaker organic sales trend in a number of markets, which was partly offset by a good development in the aerospace business as well as significant sales in the oil and gas operations.
"Overall, organic sales decreased by 1 percent and by 3 percent excluding our positive project transactions," he said, adding that operating profit for the period declined 9 percent, mainly because of reduced sales and stock adjustments in Trelleborg Wheel Systems.
Commenting on cost-saving measures announced at the end of the second quarter, Nilsson said he expected the initiatives to have an impact toward the end of the year and during 2020.
Nilsson said the industrial trend is generally weaker in most geographical markets compared with the first half of the year, reflecting the trade conflict between the U.S. and China, as well as the uncertainty related to Brexit.
"This global economic slowdown has impacted sales volumes, not least to customers in the automotive and general engineering industries for both Trelleborg Sealing Solutions and Trelleborg Industrial Solutions," Nilsson added.
Overall, the company official anticipated that the demand in the last quarter of the year would be on a par with the third quarter, and with an unfavorable sales mix similar to the third quarter.
"As previously, we are carefully monitoring economic developments and stand well prepared to manage fluctuating market conditions," he said.