Trelleborg — Audit Report / Information 2008

Feb 11, 2009

Lower volume and earnings due to sharp decline in demand and considerable nonrecurring costs

• Net sales for the full year rose to SEK 31,263 M (30,971). Net sales in the fourth quarter fell to SEK 7,343 M (7,799) due to a sharp decline in several market segments.
• Operating profit for the full year amounted to SEK 374 M (1,707). For the quarter, an operating loss of SEK 800 M (profit: 342) was reported, including items affecting comparability amounting to an expense of SEK 792 M (expense: 178).
• The European Commission has announced its decision of the competition investigation that has been ongoing since 2007 after the end of the period. Fines and costs of SEK 416 M have been included in items affecting comparability as a result of the decision. Accordingly, the potential outcome that was communicated earlier is substantially reduced.
• In addition, items affecting comparability in the fourth quarter include new impairment of SEK 223 M and costs for restructuring programs in progress of SEK 153 M, mainly within Trelleborg Automotive.
• The Group's operating profit in the fourth quarter declined, as a result of reduced volume, costs for capacity adjustment and personnel reductions, and continued production disruptions in Trelleborg Engineered Systems.
• Operating cash flow in the fourth quarter remained strong and amounted to SEK 602 M (811).

President and CEO Peter Nilsson:

"The weakening of the demand in many of our markets in the fourth quarter was severe. An adaptation of capacity has been in progress since the second quarter of 2008. At the same time, our market positions have become stronger and, in many subsegments, we have captured market shares."

Oct - Dec	Group		Continuing operations excl. items affecting comparability
SEK M	2008	2007	2008	2007
Net sales	7,343	7,799	7,343	7,762
Operating profit	-800	342	-8	524
Profit for the period	-842	140	-127	278
Earnings per share, SEK 1)	-9.35	1.50	-1.45	3.00

Jan - Dec
SEK M	2008	2007	2008	2007
Net sales	31,263	30,971	31,263	30,810
Operating profit	374	1,707	1,798	2,274
Profit for the period	-258	838	889	1,282
Earnings per share, SEK 1)	-2.95	9.10	9.75	14.00

1) Profit for the period attributable to equity holders of the parent divided by the average number of shares

Outlook for the first quarter of 2009

Outlook for the first quarter of 2009. Overall, lower demand is expected compared with the fourth quarter 2008.

The Board proposes no dividend

Proposed dividend. The Board of Directors and President proposes that no dividend be paid for 2008 (dividend 2007: 6.50 SEK per share).

Key ratios		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Net sales	7,343	7,799	31,263	30,971
Operating profit	-800	342	374	1,707
Profit before tax	-953	220	-166	1,268
Profit for the period	-842	140	-258	838
- attributable to equity holders of the parent	-845	134	-267	821
- attributable to minority interest	3	6	9	17
Earnings per share, SEK 1)	-9.35	1.50	-2.95	9.10
Average number of employees, of whom 2)			24,347	25,158
- women			6,294	6,431
- men			18,053	18,727

Operating key ratios		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Net sales	7,343	7,762	31,263	30,810
Operating profit	-8	524	1,798	2,274
Profit before tax	-161	403	1,258	1,836
Profit for the period	-127	278	889	1,282
Earnings per share, SEK 1)	-1.45	3.00	9.75	14.00
EBITDA, %	3.9	10.1	9.1	10.6
Operating margin (ROS), %	neg	6.7	5.7	7.3

1) Profit for the period attributable to equity holders of the parent divided by the average number of shares

2) Number of employees at year end amounted to 23 202 (25 869) incl hired and temporary employed

The Group's key figures

October – December 2008

Net sales declined to SEK 7,343 M (7,799)

Net sales. The Trelleborg Group's net sales for the fourth quarter of 2008 amounted to SEK 7,343 M (7,799), down 6 percent. Organic sales during the quarter fell 15 percent. Based on comparable exchange rates, sales declined 13 percent.

Change in net sales	Oct - Dec	Oct - Dec
%	2008	2007
Organic sales	-15	+10
Acquisitions/divestments	+2	+3
Currency impact	+7	-1
Total	-6	+12

Operating loss of SEK 800 M (profit: 342)

Operating loss and earnings per share. Including items affecting comparability amounting to an expense of SEK 792 M (expense: 178), an operating loss of SEK 800 M (profit: 342) was reported for the quarter. In addition to items affecting comparability, which are reported on page 5, earnings were negatively impacted by:

• Rapidly declining volumes, resulting in under-absorption of fixed costs,
• Costs for capacity adaptation and personnel reductions totaling approximately SEK 200 M, of which approximately SEK 150 M in Trelleborg Automotive,
• Costs of about SEK 60 M for production disruptions in the offshore oil/gas segment in Trelleborg Engineered Systems.

Exchange-rate fluctuations in the translation of the earnings of foreign Group companies had a negative impact of SEK 53 M on earnings, compared with the same period in 2007. Financial revenues and expenses amounted to net

expenses of SEK 153 M (expense: 122), corresponding to an average interest rate of 5.00 percent (4.85).

Loss before tax amounted to SEK 953 M (profit: 220). Net loss was SEK 842 M (profit: 140). Loss per share was SEK 9.35 (earnings: 1.50).

January – December 2008

Net sales in line with preceding year

Net sales. The Trelleborg Group's net sales for full-year 2008 amounted to SEK 31,263 M (30,971), up 1 percent. Organic sales declined 1 percent. Based on comparable exchange rates, the sales increase was 1 percent.

Change in net sales	Jan - Dec	Jan - Dec
%	2008	2007
Organic sales	-1	+10
Acquisitions/divestments	+2	+6
Currency impact	0	-2
Total	+1	+14

In 2008, six (6) acquisitions were made that were all of a complementary nature, as well as two units in which Trelleborg acquired the remaining minority share. In total, acquisitions were completed corresponding to SEK 1,215 M in sales and with approximately 970 employees. SEK 1,215 M in sales

Good growth outside North America and Western Europe

Acquisitions corresponding to

The distribution of the Group's sales was 23 percent (+/- 0) in North and South America, 67 percent (+1) in Europe and 10 percent (+11) in Asia and rest of the world.

Sales in markets outside North America, Western Europe, Japan and Oceania increased by 14 percent during the year. The total percentage of Group sales in these markets was 19 percent in 2008.

Operating profit and earnings per share. Including items affecting comparability amounting to an expense of SEK 1 424 M (expense 558). Operating profit for full-year 2008 amounted to SEK 374 M (1,707). Exchange-rate changes from the translation of earnings of foreign Group companies had a negative impact of SEK 69 M on operating profit, compared with 2007. Financial income and expense amounted to a net expense of SEK 540 M (expense: 439), corresponding to an average interest rate of 4.75 percent (4.40). Before tax, a loss of SEK 166 M (profit: 1,268) was reported. The total tax cost amounted to SEK 92 M (430), which was affected by the lower earnings and the impact of items affecting comparability. After tax, a loss of SEK 258 M (profit: 838) was reported. A loss per share of SEK 2.95 (earnings: 9.10) was reported. Operating profit amounted to SEK 374 M (1,707)

Net debt and cash flow. Net debt rose SEK 2,613 M during the year to SEK 12,706 M. Exchange-rate changes accounted for SEK 1,636 M of the increase. Otherwise, the increase resulted from the completion of company acquisitions and payment of dividends to shareholders, part of which was offset by a positive free cash flow. The debt/equity ratio was 124 percent, compared with 100 percent at December 31, 2007. Net debt increased to SEK 12,706 M

Financing. Trelleborg has long-term basic financing, via a syndicated loan, that covers its needs well into 2012. Long term credit facilities, including other long-term loans, amounted to approximately SEK 16,300 M at yearend 2008. The unutilized portion amounted to approximately SEK 5,500 M. Short-term financing totaled about SEK 2,650 M. Long-term financing covers needs well into 2012

The equity/assets ratio was 30 percent (34).

Change in net debt	Jan - Dec
SEK M	2008	2007
Net debt, opening balance	-10,093	-9,350
Net cash flow for the period	-977	-513
Borrowing costs	0	2
Exchange rate differences	-1,636	-232
Net debt, closing balance	-12,706	-10,093
Debt/equity ratio, %	124	100

Capital employed at year-end amounted to SEK 22,238 M, compared with SEK 19,855 M at the end of 2007. The increase was due mainly to translation differences of SEK 2,359 M and the impact of completed acquisitions.

Shareholders' equity per share at year-end amounted to SEK 112 (110).

	Group		Continuing operations excl. items affecting comparability
	Jan - Dec		Jan - Dec
%	2008	2007	2008	2007
Return on capital employed	1.8	8.7	8.4	11.5
Return on shareholders' equity	neg	8.4	8.8	13.0

The Group's operating key figures

October – December 2008

Operating loss of SEK 8 M (profit: 524)	Earnings and margins. For continuing operations, excluding items affecting comparability, an operating loss of SEK 8 M (profit: 524) was reported. The decline in earnings was due to: - Rapidly declining volumes, resulting in fixed costs not being covered, - Costs for capacity adaptation and personnel reductions totaling approximately SEK 200 M, of which approximately SEK 150 M in Trelleborg Automotive, - Costs of about SEK 60 M for production disruptions in the offshore oil/gas segment in Trelleborg Engineered Systems.
	Prices for several raw materials decreased substantially during the fourth quarter. Price changes are subject to a time lag of three to six months before they gradually affect Trelleborg. Exchange-rate fluctuations in the translation of the earnings of foreign Group companies had a negative impact of SEK 18 M on earnings, compared with the same period in 2007.
EBITDA margin was 3.9 percent (10.1)	The operating margin was negative during the quarter (positive: 6.7). Operating profit before depreciation (EBITDA) during the quarter amounted to SEK 289 M (793). The EBITDA margin for the quarter was 3.9 percent (10.1). Before tax, a loss of SEK 161 M (profit: 403) was reported and, after tax, the loss amounted to SEK 127 M (profit: 278). The loss per share was SEK 1.45 (earnings: 3.00).

Operating cash flow for the quarter of SEK 602 M (811)

Cash flow. The operating cash flow remained favorable, amounting to SEK 602 M (811).

The capital expenditure level during the quarter amounted to SEK 538 M (513). A number of major investment projects, in such countries as China and Sri Lanka, have now entered their final phase and are expected to be completed during the first quarter of 2009.

	Oct - Dec		Jan - Dec
	2008	2007	2008	2007
Operating cash flow, SEK M	602	811	1,594	1,718
Operating cash flow/operating profit %	neg	155	89	76
Operating cash flow per share, SEK	6.65	9.00	17.65	19.00

Items affecting comparability during the quarter: Expense of SEK 792 M before tax and expense of SEK 716 M after tax

Items affecting comparability for calculation of operating key figures.

Items affecting comparability totaling an expense of SEK 792 M (expense: 178) before tax have been excluded from calculations of the Group's operating key figures. The items affecting comparability comprise three components:

• Penalties and expenses of SEK 416 M for the ongoing competition investigation; also refer to page 6.
• In addition to the previously announced action program within Fluid Solutions, Nantes, France, further impairment losses on tangible and intangible assets totaling SEK 223 M were posted for this business unit during the fourth quarter.
• Restructuring costs for previously communicated and ongoing programs within Trelleborg Automotive and for previously announced measures within the other three business areas, SEK 153 M.

The previously communicated and ongoing programs within Trelleborg Automotive with the objective of improving the production structure, which were initiated in 2006, have now entered the completion phase. During fullyear 2008, charges against operating profit for these programs amounted to SEK 868 M, of which SEK 319 M in the fourth quarter. Remaining costs for the approved measures is estimated at approximately SEK 50 M, most of which is expected to be charged to earnings for 2009.

Costs charged against earnings in 2008 related primarily to the closure, relocation and impairment losses within Fluid Solutions in Nantes, France, and to the closure of a plant in Peru, USA. Manufacturing in Peru was closed during the fourth quarter.

Items affecting comparability of operating profit 1)		Oct - Dec	Jan - Dec
SEK M	2008	2007	2008	2007
Trelleborg Engineered Systems	-45	-22	-79	-89
Trelleborg Automotive	-319	-151	-868	-382
Trelleborg Sealing Solutions	-7	-	-32	-
Trelleborg Wheel Systems	-5	-5	-15	-27
Sale of property	-	-	-	26
Legal non-recurring items	-416	-	-430	-86
Total items affecting comparability	-792	-178	-1,424	-558

1) Main part reported as other operating expenses

January – December 2008

Operating profit of SEK 1,798 M (2,274)	Earnings and margins. For continuing operations, excluding items affecting comparability, operating profit amounted to SEK 1,798 M (2,274). The operating margin was 5.7 percent (7.3). Operating profit before depreciation (EBITDA) during 2008 amounted to SEK 2,868 M (3,276).
EBITDA margin was 9.1% (10.6)	The EBITDA margin was 9.1 percent (10.6). Operating cash flow amounted to SEK 1,594 M (1,718).
	Profit before tax amounted to SEK 1,258 M (1,836) and profit after tax to SEK 889 M (1,282). Earnings per share amounted to SEK 9.75 (14.00). The tax rate was 29.3 percent (30.2).
Investments in selected segments and in geographical markets	Capital expenditure and return. The investment level totaled SEK 1,526 M (1,333). Investments were made in selected segments, such as agriculture and offshore oil/gas, and in geographical markets, such as China, Sri Lanka and Turkey. A number of major investment projects have now entered their final phase and are expected to be completed during the first quarter of 2009. The return on capital employed during the year was 8.4 percent (11.5).
	Other information, fourth quarter of 2008
Acquisition of remaining interest in Shanghai Reeves	Acquisition. The Trelleborg Group continues to make acquisitions in line with the Group's strategy of growing within attractive segments offering healthy growth and profitability potential, and where customer needs of sealing, damping and protecting play a key role. To enhance positions in the growing graphics market in China, the Trelleborg Engineered Systems business area acquired the remaining shares outstanding in the formerly majority-owned Shanghai Reeves. The company was previously part of Reeves Brothers, which Trelleborg acquired in 2006. Shanghai Reeves has annual sales of about SEK 60 M and 100 employees.
	Events after period end
European Commission announces decision on competition investigation	Competition investigation. Two of Trelleborg's subsidiaries in France and the US are the subject of investigations by competition authorities in the US, EU and Brazil. The authorities in Japan have completed their investigation without taking any measures against Trelleborg. On January 28, the European Commission announced a decision in its ongoing, earlier communicated, competition investigation regarding certain types of marine oil hoses. The investigation began in May 2007 and Trelleborg has awaited the decisions of authorities for some time. According to the Commission's announcement, one of the Trelleborg Group's French subsidiaries participated in illegal price cooperation for certain types of marine oil hoses. The European Commission has set the fine for the subsidiary at EUR 24.5 M. Trelleborg has received the formal decision and is analyzing it prior to taking a position regarding whether to appeal the matter. Trelleborg is also affected by ongoing investigations by, inter alia, the US Department of Justice into the competitive conditions for certain types of marine oil hoses and certain types of marine fenders. However, the European Commission's decision is completely independent of that of the

US authorities. Trelleborg has continuously assisted the US authorities, and

awaits their decision on the matter.

Based on knowledge of the abovementioned decision by the European Commission, SEK 416 M was charged against earnings for the fourth quarter of 2008, in addition to the legal costs of SEK 100 M already charged against Trelleborg's earnings. Accordingly, costs for the matter are expected to total SEK 516 M. This amount includes the abovementioned EU fines, fines and expenses in the US and other affected countries, and damages and legal expenses. This assessment is still subject to uncertainties relating to length and outcome of ongoing processes.

Proposals to Annual General Meeting April 23, 2009

The Board proposes no dividend for 2008 Proposal regarding dividend. In light of earnings for 2008, the Group's balance sheet and the considerable uncertainty regarding the future market trend, the Board proposes that no dividend be paid for 2008. The Board regards this decision as motivated in terms of the policy that states that the dividend in the long term must amount to 30-50 percent of net profit for the year. The dividend for 2007 was SEK 6.50 per share.

Nominations Committee's proposals for 2009 Annual General Meeting

Proposals for the Annual General Meeting. Rolf Kjellman, originally elected to the Trelleborg Board of Directors in 1997 and representing Trelleborg's principal owner Dunkerintressen, has declined re-election at the 2009 Annual General Meeting. Rolf Kjellman, born in 1939, has retired from his position as the Executive Director of the Henry and Gerda Dunker Foundation and Donation Fund No. 2, but remains a member of the Board. Claes Lindqvist, also a member of the Board of Trelleborg will replace Rolf Kjellman as Executive Director of the Henry and Gerda Dunker Foundation and Donation Fund No. 2.

A Nomination Committee consisting of representatives of the major shareholders, corresponding to approximately 69 percent of the votes in Trelleborg, and the Chairman of the Board, has decided to propose to the Annual General Meeting that Hans Biörck be elected new Member of the Board.

Hans Biörck, born in 1951, holds a degree in business administration and is Executive Vice President and Chief Financial Officer at Skanska AB. Among other positions, he was formerly CFO of Autoliv Inc and CFO of Esselte AB, where he also held other positions.

Hans Biörck has been a member of the Henry and Gerda Dunker Foundation and Donation Fund No. 2 since 2003. Hans Biörck is also a member of the Financial Reporting Council.

Moreover, the re-election of all other Board Members, Heléne Bergquist, Staffan Bohman, Claes Lindqvist, Sören Mellstig, Peter Nilsson and Anders Narvinger as Chairman, is proposed.

In addition to the Chairman of the Board, the following persons formed the Nominations Committee: Didrik Normark (Chairman of the Nominations Committee) of the Henry and Gerda Dunker Foundation; Ramsay Brufer, Alecta; Lars Öhrstedt, AFA Försäkring; Henrik Didner, Didner & Gerge Funds and KG Lindvall, Swedbank Robur Fonder AB.

Trelleborg's Annual General Meeting will be held at 5 p.m. on Thursday, April 23, 2009 in Trelleborg.

Risk management

Risks/risk management within Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in various systems and processes. During the year, an Enterprise Risk Management process (ERM) was established with the overall objective of ensuring that risks are managed systematically, that the right priorities are made and that risks are managed as efficiently as possible.

The principal risks and uncertainties currently faced by the Group relate to the impact and length of the decline in demand, dictated by the economic trend, for the company's products, the situation in financial markets, terms and conditions of loan contracts, changes in exchange rates and impairment testing of tangible and intangible assets.

For further information about the Group's operational and financial risks, risk management and risk exposure, refer to Trelleborg's 2007 Annual Report. Updated information will be published in the 2008 Annual Report. Also refer to www.trelleborg.com.

The Group's market outlook

Market outlook for the first quarter of 2009. Overall, lower demand is expected compared with the fourth quarter 2008. Market outlook for the first quarter of 2009

Outlook from the interim report published on October 28, 2008: Outlook for the fourth quarter of 2008. In general a lower demand is expected compared with the same quarter in 2007. A continued substantial decline is anticipated in the automotive industry in North America and Western Europe. Demand is expected to remain strong for the segments aerospace, offshore oil/gas, infrastructure construction and agriculture.

Trelleborg, February 11, 2009 The Board of Directors of Trelleborg AB (publ)

_____________________________________________________________

This report was prepared in accordance with IAS 34 Interim Financial Reporting.

Trelleborg AB continues to apply the same accounting policies and valuation methods as those described in the most recent Annual Report. This report has not been reviewed specifically by Trelleborg AB's company auditors.

		Oct - Dec
SEK M	2008	2007	2008	2007
Excluding items affecting comparability
Net sales	3,275	3,011	12,378	11,745
Operating profit	191	308	1,087	1168
Operating margin (ROS), %	5.6	10.1	8.6	9.9
Operating cash flow	326	482	802	1,071
Operating cash flow/operating profit, %	171	156	74	92
Including items affecting comparability
Operating profit	146	286	1,008	1079
ROS, %	4.2	9.4	7.9	9.1

Trelleborg Engineered Systems

Substantially reduced demand in many segments	Demand in the business area's main markets was highly variable. A substantial decline was reported in many segments, while demand in certain segments, primarily in project-related operations within offshore oil/gas and infrastructure, remained favorable.
Organic sales fell by 4 percent	Organic sales fell by 4 percent during the quarter, while total sales for the quarter rose by 9 percent, primarily as a result of exchange-rate fluctuations and acquisitions.
Operating profit negative impacted by productivity disruptions	Operating profit declined as a result of rapidly falling volumes in many segments causing under-absorption of fixed costs. Profit was also adversely impacted by costs related to personnel reductions to adapt capacity to lower demand, and cost of SEK 60 M for production disruptions in the offshore oil/gas segment attributable to a lack of availability of raw materials.
Continued favorable cash flow	Operating cash flow remained favorable and amounted to SEK 326 M (482) impacted by lower operating profit and a higher investment level.
Acquisition of remaining part of Shanghai Reeves	To strengthen the company's position in the emerging market in China, the business area acquired the remaining shares in the presviously majority owned Shanghai Reeves. The company was part of Reeves Brothers which was acquired in 2006. It generates sales of approximately SEK 60 M and has 100 employees.

Trelleborg Automotive

		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Excluding items affecting comparability
Net sales	1,869	2,562	9,461	10,299
Operating profit	-348	34	-381	203
Operating margin (ROS), %	neg	1.2	neg	1.9
Operating cash flow	108	98	53	124
Operating cash flow/operating profit, %	neg	288	neg	61
Including items affecting comparability
Operating profit	-667	-117	-1,249	-179
ROS, %	neg	neg	neg	neg

Sharp decline in car production in North America and Western Europe	In the fourth quarter, car production in North America declined by about 26 percent compared with the year-earlier period. Car production was down 28 percent in Western Europe and down 15 percent in Eastern Europe. In Asia, car production declined by about 6 percent (source: JD Power/Trelleborg).
Organic sales fell 32 percent	Organic sales fell by 32 percent. Net sales declined by 27 percent as a result of a sharp decline in global demand and substantial inventory reductions, primarily among customers delivering systems to OEMs within the automobile industry.
Operating profit negatively impacted by lower volumes	Operating profit was negatively impacted by the considerable volume reductions in the market causing under-absorption of fixed costs. Operating profit has also been impacted by extensive capacity reductions and personnel cutbacks totaling approximately SEK 150 M.
Cash flow rose to SEK 108 M (98)	Despite the reported operating loss, the operating cash flow for the quarter was line with the preceding year. This was attributable to a slightly lower investment level and the business area's success in reducing working capital in line with lower sales.
Aggressive measures to adjust capacity to lower demand	For some time now, the business area has been conducting activities aimed at adjusting the organization and costs to the lower level of demand. This is being done in all of the business area's units in the form of temporary production stoppages, shift reductions and personnel cutbacks. Additional measures were initiated during the fourth quarter. Prior to the end of the fourth quarter of 2008, successive personnel cutbacks were implemented, entailing a 25-percent reduction in the number of positions. Further adjustments are being continuously assessed.
Impairment losses totaling SEK 223 M	In addition to the previously announced action program in Fluid Solutions in Nantes, France, further impairment losses were reported on both tangible and intangible assets at a total of SEK 223 M in the fourth quarter due to the continued profitability problem.

Trelleborg Sealing Solutions

		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Excluding items affecting comparability
Net sales	1,359	1,440	6,022	5,844
Operating profit	138	194	888	839
Operating margin (ROS), %	10.1	13.5	14.7	14.4
Operating cash flow	274	246	921	751
Operating cash flow/operating profit, %	199	127	104	90
Including items affecting comparability
Operating profit	131	194	856	839
ROS, %	9.6	13.5	14.2	14.4

Substantially weaker demand	The market conditions for Trelleborg Sealing Solutions were substantially weakened during the fourth quarter. The decline in demand in the automotive-related part of operations accelerated sharply during the quarter.
Organic growth fell 16 percent	Organic sales during the quarter fell by 16 percent. Net sales declined by 6 percent as a result of inventory reductions by many customers and lower demand in the global automotive industry and durable goods for industrial segments in Europe, primarily hydraulics and pneumatics.
Operating profit declined due to falling volumes	Operating profit declined to SEK 138 M (194) due to rapidly falling volumes causing under-absorption of fixed costs. The business area has implemented extensive capacity adjustments in the form of personnel cutbacks. Additional measures to adapt capacity to lower demand levels will be implemented during the first half 2009.
Cash flow rose to SEK 274 M (246)	The focus on measures to improve cash flow have yielded results and operating cash flow rose to SEK 274 M (246).
Continued growth initiative	The business area is continuing to focus on selected segments and structural investments are being made in the markets in Asia, South America and Eastern Europe to create better positions in the market in the long-term.

	Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Excluding items affecting comparability
Net sales	903	825	3,708	3,248
Operating profit	60	60	363	288
Operating margin (ROS), %	6.7	7.4	9.8	8.9
Operating cash flow	6	70	129	146
Operating cash flow/operating profit, %	10	117	36	51
Including items affecting comparability
Operating profit	55	55	348	261
ROS, %	6.1	6.8	9.4	8

Trelleborg Wheel Systems

Positive global trend for large agricultural tires	The positive global trend for large agricultural tires continued during the quarter, which benefits Trelleborg as the Group's products are well positioned in this area. Global demand for industrial tires declined sharply as a result of the weaker industrial economy.
No organic growth during the quarter	There was no organic growth during the quarter. Sales grew by 9 percent due to positive exchange-rate effects. Sales of agricultural tires, particularly large dimensions, continued to increase compared with the year-earlier period, mainly as a consequence of the continued strength of underlying markets and effective marketing efforts. Sales of industrial tires declined due to a sharp downturn in demand in relation to OEM customers. This was partly offset by favorable sales to the aftermarket.
	The business area continued to capture market shares both for agricultural tires and for industrial tires.
Operating profit amounted to SEK 60 M (60)	Operating profit for the quarter was in line with 2007. It was favorably impacted by healthy volume growth, a high level of capacity utilization in agricultural tires and an improved product and price mix. Earnings were negatively affected by lower volumes in industrial tires and strong currency fluctuations in several export markets.
Cash flow declined to SEK 6 M (70)	Operating cash flow declined as a result of a high level of investment and a higher inventory level relative to sales.
Efficiency enhancements in production platform	The consolidation of the production of industrial tires to Sri Lanka is progressing according to plan and is now at the final stage.

Financial accounts

Income Statements

Group		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations
Net sales	7,343	7,762	31,263	30,810
Cost of goods sold	-5,696	-5,861	-23,603	-23,151
Gross profit	1,647	1,901	7,660	7,659
Selling expenses	-685	-584	-2,437	-2,244
Administrative expenses	-768	-782	-2,982	-3,002
Research and development costs	-154	-149	-603	-550
Other operating income/expense	-844	-44	-1,282	-159
Profit from part. in assoc. companies	4	4	18	12
Operating profit	-800	346	374	1,716
Financial income and expenses	-153	-122	-540	-439
Profit before tax	-953	224	-166	1,277
Tax	111	-80	-92	-430
Profit for the period	-842	144	-258	847
Discontinued operations
Net sales	-	37	-	161
Operating profit	-	-4	0	-9
Profit before tax	-	-4	0	-9
Profit for the period	-	-4	0	-9
Total net sales	7,343	7,799	31,263	30,971
Total operating profit	-800	342	374	1,707
Total profit before tax	-953	220	-166	1,268
Total profit for the period	-842	140	-258	838
- attributable to equity holders of the parent	-845	134	-267	821
- attributable to minority interest	3	6	9	17

Earnings per share		Oct - Dec		Jan - Dec
SEK	2008	2007	2008	2007
Continuing operations	-9.35	1.55	-2.95	9.20
Discontinued operations	-	-0.05	-	-0.10
Total	-9.35	1.50	-2.95	9.10
Number of shares
End of period	90,357,261	90,357,261	90,357,261	90,357,261
Average number	90,357,261	90,357,261	90,357,261	90,357,261

Balance Sheets
Group	Dec 31	Dec 31
SEK M	2008	2007
Property, plant and equipment	7,137	6,293
Intangible assets	11,833	10,098
Financial assets	1,586	967
Total non-current assets	20,556	17,358
Inventories	4,775	4,012
Current operating receivables	7,505	7,339
Current interest-bearing receivables	178	95
Cash and cash equivalents	749	530
Total current assets	13,207	11,976
Total assets	33,763	29,334
Shareholders' equity, excluding minority share	10,153	9,932
Minority share	85	120
Total equity	10,238	10,052
Non-current interest-bearing liabilities	10,834	7,276
Other non-current liabilities	1,977	1,598
Total non-current liabilities	12,811	8,874
Interest-bearing current liabilities	2,805	3,446
Other current liabilities	7,909	6,962
Total current liabilities	10,714	10,408
Total equity and liabilities	33,763	29,334

Specification of changes in equity	Dec 31	Dec 31
SEK M	2008	2007
Attributable to equity holders of the parent
Opening balance, January 1	9,932	9,580
Cash flow hedges, net after tax	-109	-16
Translation difference	2,066	172
Exchange-rate difference on hedging instruments 1)	-882	-83
Profit for the period	-267	821
Dividend	-587	-542
Closing balance	10,153	9,932
Attributable to minority interest
Opening balance, January 1	120	107
Acquisitions	-40	4
Translation difference	-1	-5
Profit for the period	9	17
Dividend	-3	-3
Closing balance	85	120
Sum Closing balance, equity	10,238	10,052

1) Net after tax

Published, February 11, 2009 14 (20)

Cash flow statements

Group	Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Operating activities
Operating profit	-800	346	374	1,716
Adjustments for items not included in cash flow:
Depreciation, property, plant and equipment	239	202	897	836
Depreciation, intangible assets	47	43	157	149
Impairment losses, property, plant and equipment	231	26	392	18
Impairment losses, intangible assets	31	38	32	69
Provision for restructuring costs	541	133	1,016	484
Undistributed result from part. in assoc. companies	-5	17	-15	10
	284	805	2,853	3,282
Interest received and other financial items	57	53	185	61
Interest paid and other financial items	-104	-166	-513	-487
Taxes paid	-101	-190	-402	-446
Cash flow from operating activities before changes in
working capital	136	502	2,123	2,410
Cash flow from changes in working capital:
Change in inventories	226	4	-134	-324
Change in operating receivables	1,316	357	1,069	-359
Change in operating liabilities	-705	92	-748	343
Utilization of restructuring provisions	-173	-144	-447	-320
Cash flow from operating activities	800	811	1,863	1,750
Investing activities
Acquisitions	-66	-295	-802	-616
Restructuring measures in acquired entities	-	-2	-	-5
Disposals 1)	-	-	-2	127
Capital expenditure, property, plant and equipment	-460	-469	-1,367	-1,212
Capital expenditure in intangible assets	-79	-43	-159	-121
Sale of non-current assets	20	63	80	107
Cash flow from investing activities	-585	-746	-2,250	-1,720
Financing activities
Change in interest-bearing investments	-296	31	-332	19
Change in interest-bearing liabilities	272	-88	1,488	400
Dividend paid to shareholders	-	-	-587	-542
Dividend paid to minority	-	0	-3	-3
Cash flow from the financing activities	-24	-57	566	-126
Cash flow for the period	191	8	179	-96
Cash and cash equivalents:
At beginning of the period	521	515	530	616
Exchange rate differences	37	7	40	10
Cash and cash equivalents at end of period	749	530	749	530

1) Including cash flow in entities for which an agreement regarding discontinuation has been reached and sale of real estate

	Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Net sales	7,343	7,762	31,263	30,810
EBITDA	289	793	2,868	3,276
Operating profit	-8	524	1,798	2,274
Profit for the period	-127	278	889	1,282

Net sales	Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations
Trelleborg Engineered Systems	3,275	3,011	12,378	11,745
Trelleborg Automotive	1,869	2,562	9,461	10,299
Trelleborg Sealing Solutions	1,359	1,440	6,022	5,844
Trelleborg Wheel Systems	903	825	3,708	3,248
Eliminations	-63	-76	-306	-326
Total	7,343	7,762	31,263	30,810

EBITDA 1)		Oct - Dec	Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	293	388	1,429	1,464
Trelleborg Automotive	-232	154	57	634
Trelleborg Sealing Solutions	189	239	1,079	1,019
Trelleborg Wheel Systems	84	82	453	374
Other companies	-1	2	-8	-6
Group items	-44	-72	-142	-209
Total excluding items affecting comparability	289	793	2,868	3,276
Items affecting comparability
Trelleborg Engineered Systems	-31	-38	-63	-86
Trelleborg Automotive	-82	-93	-481	-314
Trelleborg Sealing Solutions	-7	-	-27	-
Trelleborg Wheel Systems	-5	-5	-15	-27
Sale of property	-	-	-	26
Legal non-recurring items	-416	-	-430	-86
Total including items affecting comparability	-252	657	1,852	2,789

1) Operating profit before depreciations and impairment losses.

EBITDA 1)	Oct - Dec			Jan - Dec
%	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	8.7	12.8	11.3	12.4
Trelleborg Automotive	neg	5.9	0.7	6.1
Trelleborg Sealing Solutions	13.9	16.7	17.9	17.4
Trelleborg Wheel Systems	9.4	9.9	12.2	11.5
Total excluding items affecting comparability	3.9	10.1	9.1	10.6
Including items affecting comparability
Trelleborg Engineered Systems	7.8	11.5	10.8	11.7
Trelleborg Automotive	neg	2.3	neg	3.1
Trelleborg Sealing Solutions	13.4	16.7	17.5	17.4
Trelleborg Wheel Systems	8.8	9.3	11.8	10.7
Total including items affecting comparability	neg	8.4	5.9	9.0

1) Operating profit before depreciations excluding participations in associated companies in relation to net sales.

Operating profit		Oct - Dec	Jan - Dec
SEK M	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	191	308	1,087	1168
Trelleborg Automotive	-348	34	-381	203
Trelleborg Sealing Solutions	138	194	888	839
Trelleborg Wheel Systems	60	60	363	288
Other companies	-2	2	-9	-8
Group items	-47	-74	-150	-216
Total excluding items affecting comparability	-8	524	1,798	2,274
Items affecting comparability
Trelleborg Engineered Systems	-45	-22	-79	-89
Trelleborg Automotive	-319	-151	-868	-382
Trelleborg Sealing Solutions	-7	-	-32	-
Trelleborg Wheel Systems	-5	-5	-15	-27
Sale of property	-	-	-	26
Legal non-recurring items	-416	-	-430	-86
Total including items affecting comparability	-800	346	374	1,716

Operating margin, (ROS) 1)		Oct - Dec	Jan - Dec
%	2008	2007	2008	2007
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	5.6	10.1	8.6	9.9
Trelleborg Automotive	neg	1.2	neg	1.9
Trelleborg Sealing Solutions	10.1	13.5	14.7	14.4
Trelleborg Wheel Systems	6.7	7.4	9.8	8.9
Total excluding items affecting comparability	neg	6.7	5.7	7.3
Including items affecting comparability
Trelleborg Engineered Systems	4.2	9.4	7.9	9.1
Trelleborg Automotive	neg	neg	neg	neg
Trelleborg Sealing Solutions	9.6	13.5	14.2	14.4
Trelleborg Wheel Systems	6.1	6.8	9.4	8.0
Total including items affecting comparability	neg	4.4	1.1	5.5

1) Operating profit excluding participations in associated companies in relation to net sales.

Capital employed 1)	Dec 31	Dec 31
SEK M	2008	2007
Continuing operations
Trelleborg Engineered Systems	7,846	6,201
Trelleborg Automotive	5,077	5,191
Trelleborg Sealing Solutions	8,037	6,975
Trelleborg Wheel Systems	2,145	1,679
Other companies	19	20
Group items	-3	43
Provisions for restructuring measures	-883	-254
Total	22,238	19,855

1) Total assets less interest-bearing investments and non-interest bearing operating liabilities

(including pension liabilities) and excluding tax receivables and tax liabilities.

Return on capital employed, (ROCE) 1)	Jan - Dec
%	2008	2007
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	15.5	18.6
Trelleborg Automotive	neg	3.9
Trelleborg Sealing Solutions	12.3	12.5
Trelleborg Wheel Systems	19.5	18.5
Total excluding items affecting comparability	8.4	11.5
Including items affecting comparability
Trelleborg Engineered Systems	14.5	17.3
Trelleborg Automotive	neg	neg
Trelleborg Sealing Solutions	11.9	12.5
Trelleborg Wheel Systems	18.9	16.9
Total including items affecting comparability	1.8	8.8

1) Operating profit in relation to average capital employed.

Cash flow report				Capital		Sold non		Change in	Total cash flow
		EBITDA 1)		expenditure		current assets		working capital		Jan - Dec
SEK M	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Trelleborg Engineered Systems	1,459	1,503	-564	-432	17	17	-110	-17	802	1,071
Trelleborg Automotive	107	688	-462	-441	6	25	402	-148	53	124
Trelleborg Sealing Solutions	1,104	1,041	-257	-239	6	28	68	-79	921	751
Trelleborg Wheel Systems	468	385	-232	-171	8	2	-115	-70	129	146
Other companies	-8	-7	-	-	-	33	3	-28	-5	-2
Group items	-277	-325	-11	-50	43	2	-61	1	-306	-372
Operating cash flow	2,853	3,285	-1,526	-1,333	80	107	187	-341	1,594	1,718
Utilization of restructuring provisions									-447	-325
Dividend paid to minority									-3	-3
Financial items									-328	-426
Paid tax									-402	-446
Free cash flow									414	518
Acquisitions									-802	-616
Disposals 2)									-2	127
Dividend paid to shareholders									-587	-542
Sum net cash flow									-977	-513

1) Excluding undistributed result from associated companies and allocated group expenses

2) Including cash flow in entities for which an agreement regarding discontinuation has been reached and sale of real estate

Acquisitions, January - December
SEK M	2008	2007
Purchase price 1)	790	598
Acquisition expenses	12	18
Net realizable value of acquired assets	480	136
Goodwill	322	480
Acquired assets and liabilities:
Property, plant and equipment	187	66
Intangible assets	128	2
Deferred tax	-39	20
Associated companies	-	-4
Operating assets	261	107
Minority share	38	-
Operating liabilities	-95	-55
Total	480	136
Profit/Loss for the period	4	12
Profit/Loss for the period in acquired entities January - December	6	13

1) The acquisitions during the fourth quarter are presented on page 6

Parent company

Income Statements

Parent company		Oct - Dec		Jan - Dec
SEK M	2008	2007	2008	2007
Administrative expenses	-90	-125	-339	-439
Other operating income	43	37	263	254
Operating profit	-47	-88	-76	-185
Financial income and expenses	-574	2856	-1,452	2392
Profit before tax	-621	2,768	-1,528	2,207
Tax	71	93	328	264
Profit for the period	-550	2,861	-1,200	2,471

Balance Sheets
Parent company	Dec 31	Dec 31
SEK M	2008	2007
Property, plant and equipment	30	32
Intangible assets	12	10
Financial assets	33,084	32,520
Total non-current assets	33,126	32,562
Current operating receivables	92	76
Current interest-bearing receivables	1,956	1,877
Cash and cash equivalents	0	0
Total current assets	2,048	1,953
Total assets	35,174	34,515
Shareholders' equity	8,645	10,209
Total equity	8,645	10,209
Non-current interest-bearing liabilities	52	137
Other non-current liabilities	6	6
Total non-current liabilities	58	143
Interest-bearing current liabilities	26,399	24,073
Other current liabilities	72	90
Total current liabilities	26,471	24,163
Total equity and liabilities	35,174	34,515

Invitation to telephone conference on February 11 at 9:30 a.m.

A telephone conference will be held on February 11 at 9:30 a.m.

Call +46 (0)8 – 5051 3792 or +44 (0)20 7806 1966 and state the code 9074263 or the password "Trelleborg." Presentation materials will be available at www.trelleborg.com about 30 minutes prior to the commencement of the conference. Click on "Investors" and then "Presentations."

Calendar

Interim report January-March 2009	April 23, 2009
Annual General Meeting in Trelleborg	April 23, 2009
Interim report January-June 2009	July 24, 2009
Interim report January-September 2009	October 29, 2009

For further information, please contact: Investors/analysts

Conny Torstensson, VP, Investor Relations Tel: +46 (0)410 – 670 70 Mobile: +46 (0)734 – 08 70 70. E-mail: conny.torstensson@trelleborg.com

Media

Mikael Sjöblom, VP, Media Relations Tel: +46 (0)410 – 670 15 Mobile: +46 (0)733 – 74 70 15 E-mail: mikael.sjoblom@trelleborg.com

Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group can be ordered from: Trelleborg AB, Corporate Communications, PO Box 153, SE-231 22 Trelleborg, by telephone on +46 (0)410-670 09, by fax on +46 (0)410- 427 63, by e-mail info@trelleborg.com or can be downloaded from the Group's website: www.trelleborg.com

Trelleborg AB (publ) Reg. No. 556006-3421 PO Box 153, SE- 231 22 Trelleborg, Sweden Tel: +46 (0)410-670 00, Fax: +46 (0)410-427 63 info@trelleborg.com www.trelleborg.com

This report contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors.

This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on Wednesday, February 11, 2009 at 7:45 a.m.