Trelleborg — Earnings Release 2007

Oct 26, 2007

Increased sales and improved earnings in all business areas

"Efficiency measures	The order and delivery scenario remained good in the third quarter and ƒ growth was favorable, with organic growth amounting to 12 percent.
in the operation and	Operating profit in continuing operations, excluding items affecting ƒ comparability, increased by 49 percent. All business areas reported
continued focus on			and the continued successful focus on more profitable segments.	increased operating profit and margins as a result of healthy volumes
profitable segments	ƒ		Activities within the framework of Trelleborg Automotive's strategic and
creates increased			Trelleborg Engineered Systems also took a decision regarding the	operational review continued during the third quarter. During the quarter,
growth and improved		and enable synergies.	relocation and specialization of production to increase competitiveness
margins," says CEO	ƒ			The Group continues to assist the authorities in the ongoing competition
Peter Nilsson.			of the impact on the Trelleborg Group stand firm.	investigation. Earlier announcements made concerning the assessment
Group key ratios			Net sales increased by 18 percent during the third quarter to SEK 7,453 M (6,306) and to SEK 23,172 M (20,342) for the January-September period.
			Third quarter	January-September
	Net profit		SEK 217 M (201)	SEK 698 M (775)
		of which, items affecting comparability*, net	SEK -87 M (-)	SEK -301 M (-17)
			SEK 7.60 (8.45) for the January-September period.	Earnings per share for the third quarter amounted to SEK 2.35 (2.20) and to
Key operating			Continuing operations, excl. items affecting comparability*:
ratios			Third quarter	January-September
		Operating profit	SEK 543 M (364)	SEK 1,745 M (1,339)
		Profit before tax	SEK 424 M (285)	SEK 1,428 M (1,116)
		Net profit	SEK 304 M (201)	SEK 999 M (788)
		Earnings per share	SEK 3.35 (2.20)	SEK 10.95 (8.60)
Outlook for the fourth quarter of 2007		outlook for the first three quarters of the year.	The outlook for the fourth quarter of 2007 remains unchanged from the
	For general industry, demand is not expected to decline and it is anticipated that the very strong demand in the Aerospace and Oil/Gas segments will continue. Cutbacks in production, mainly among North American customers, are expected to have adverse effects on automotive-related operations.

* For calculation of key operating ratios, the following items that affect comparability have been excluded: restructuring expenses, impairment losses, nonrecurring revenue and nonrecurring costs.

						Key Ratios, Group
SEK M		July - Sep		Jan - Sep	Oct 2006 -	Full year
Key ratios	2007	2006	2007	2006	Sep 2007	2006
Net sales	7 453	6 306	23 172	20 342	30 114	27 284
Operating profit	431	364	1 365	1 348	1 524	1 507
Profit before tax	312	285	1 048	1 123	1 118	1 193
Profit for the period	217	201	698	775	689	766
- attributable to minority interest	4	2	11	11	15	15
- attributable to equity holders of the parent	213	199	687	764	674	751
Earnings per share, SEK 1)	2,35	2,20	7,60	8,45	7,45	8,30
Free cash flow	375	381	156	445	629	918
Free cash flow per share, SEK 2)	4,15	4,20	1,75	4,90	7,00	10,15
Net debt			9 965	8 558	9 965	9 350
Debt/equity ratio, %			102	85	102	96
Return on shareholders' equity, %	8,8	8,1	9,5	10,2	6,9	7,6
Operating key ratios
Continuing operations excluding items affecting comparability
Net sales	7 453	6 306	23 172	20 096	30 117	27 041
Operating profit	543	364	1 745	1 339	2 221	1 815
Profit before tax	424	285	1 428	1 116	1 814	1 502
Profit for the period	304	201	999	788	1 278	1 067
Earnings per share, SEK 1)	3,35	2,20	10,95	8,60	14,00	11,65
EBITDA, %	10,4	9,3	10,7	9,9	10,5	10,0
Operating margin (ROS), %	7,3	5,7	7,5	6,6	7,3	6,6
Return on capital employed (ROA), %	10,9	8,0	11,7	9,7	11,2	9,8
Return on shareholders' equity, %	12,4	8,1	13,7	10,3	12,9	10,7
Operating cash flow	628	575	907	855	1 659	1 607
Operating cash flow/Operating profit, %	116	158	52	64	75	89
Operating cash flow per share, SEK 3)	6,95	6,35	10,05	9,45	18,40	17,80
Net debt/EBITDA, multiple					3,1	3,4
EBITDA/Financial income and exp., multiple					7,9	8,7

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

2) Net cash flow excluding acquisitions and disposals after tax and cash flow related to shareholders

3) Operating cash flow related to the average number of shares outstanding

Group

July - September 2007

Net sales During the third quarter of 2007, the Trelleborg Group's net sales amounted to SEK 7,453 M (6,306), an increase of 18 percent. Organic growth was 12 percent. The increase in sales in comparable currencies amounted to 19 percent.

Operating profit for the Group amounted to SEK 431 M (364). Profit before tax totaled SEK 312 M (285). Net profit was SEK 217 M (201). Operating profit and earnings per share Earnings per share totaled SEK 2.35 (2.20).

The earnings improvement was attributable to such factors as increased sales volumes and the continued successful focus on more profitable segments.

	Operating profit was negatively affected by restructuring costs and impairment losses of SEK 96 M before tax. These costs are derived from the action program within the Automotive and Engineered Systems business areas. In addition, operating profit for the quarter was charged with nonrecurring costs of SEK 16 M for the ongoing competition investigation of subsidiaries (see page 5). These items affecting comparability of a total of SEK 112 M before tax and SEK 87 M after tax have been excluded from the reporting of the Group's key operating ratios.
Key operating ratios	For continuing operations, excluding items affecting comparability, operating profit increased by 49 percent to SEK 543 M (364).
Earnings and margin improvements in all business areas	All business areas reported improved operating profit and operating margins. The increases are a result of continued favorable market conditions within such segments as the aerospace industry, oil/gas, infrastructure/ construction and general industry as well as the successful focusing of operations, positive effects from completed acquisitions and efficiency enhancement of operations.
	Exchange-rate fluctuations in the translation of foreign Group companies' earnings had a negative impact of about SEK 7 M on operating profit for the quarter, compared with the year-earlier period. The effect of changes in exchange rates from the flow of transactions is assessed as having had a relatively marginal impact on Group earnings in total.
EBITDA margin increased by slightly more than 1 percentage point to 10.4 percent	Operating margin increased to 7.3 percent (5.7). Operating profit excluding depreciation and amortization (EBITDA) increased to SEK 777 M (589) during the quarter and totaled SEK 3,198 M for the most recent 12-month period compared with SEK 2,730 M for full-year 2006. The EBITDA margin increased during the quarter to 10.4 percent (9.3). The Group's profit before tax, excluding items affecting comparability, rose to SEK 424 M (285), while net profit rose to SEK 304 M (201). Earnings per share amounted to SEK 3.35 (2.20).
	January - September 2007
Net sales	During the first nine months of 2007, the Trelleborg Group's net sales amounted to SEK 23,172 M (20,342), an increase of 14 percent. Organic growth was 10 percent. The sales increase in comparable currencies amounted to 16 percent.
Operating profit and earnings per share	Operating profit for the Group amounted to SEK 1,365 M (1,348). The net of financial income and expense was an expense of SEK 317 M (expense: 225), corresponding to 4.3 percent (3.5) of average net debt outstanding during the period. Profit before tax amounted to SEK 1,048 M (1,123). Net profit totaled SEK 698 M (775) and earnings per share were SEK 7.60 (8.45). Operating profit was negatively affected by restructuring costs and impairment losses attributable to action programs in the amount of SEK 320 M before tax. Nonrecurring costs relating to the ongoing competition investigation of subsidiaries had a negative impact of SEK 86 M on operating profit. A capital gain, recorded in the first quarter, from the sale of a property in Hammarbyhamnen, Stockholm, had a positive impact of SEK 26 M on operating profit before tax. These items affecting comparability, which were charged to operating profit before tax for the first nine months of the year in

excluded from the reporting of the Group's key operating ratios. Key operating ratios For continuing operations, excluding items affecting comparability, operating profit amounted to SEK 1,745 M (1,339). Exchange-rate fluctuations in the translation of foreign Group companies' earnings had a negative impact of about SEK 36 M on the operating profit for the first nine months, compared with the year-earlier period. The Group's profit before tax, excluding items affecting comparability, rose to SEK 1,428 M (1,116), and net profit rose to SEK 999 M (788). The tax rate amounted to 30 percent (29). Operating profit excluding depreciation and amortization (EBITDA) increased to SEK 2,484 M (2,016) during the period. The EBITDA margin amounted to 10.7 percent (9.9). The operating margin totaled 7.5 percent (6.6) and earnings per share amounted to SEK 10.95 (8.60). Consolidated operating cash flow for the period January-September increased by 6 percent to SEK 907 M (855). In operating cash flow, the higher generation of earnings was offset by increased tied-up capital as a result of achieved sales increases. The investment level was SEK 823 M (719). The Group's capital employed was SEK 19,577 M (18,288) at the end of the period. This increase was primarily attributable to acquisitions and increased tied-up capital. The Group's free cash flow for the period amounted to SEK 156 M (445). Net debt amounted to SEK 9,965 M (8,558). The debt-equity ratio amounted to 102 percent (85) at the end of the period. The equityassets ratio was 34 percent (38). At the end of the period, shareholders' Balance sheet, Cash flow, investments

on capital employed amounted to 11.7 percent (9.7).

equity per share (90.4 million shares) amounted to SEK 107 (110). Return

the amount of SEK 380 M before tax and SEK 301 M after tax, were

Other

Trelleborg included in Dow Jones Sustainability Index

Acquisitions

The Trelleborg Group was chosen to be included in the Dow Jones STOXX Sustainability Index (DJSI). Companies in the index are selected pursuant to a systematic analysis of financial, environmental and social performance.

The Trelleborg Group continues to make acquisitions in line with the Group's strategy of growing within attractive segments with favorable growth and profitability potential, and where the three primary customer needs of sealing, damping and protecting have a principal role.

At the beginning of the third quarter, the Trelleborg Sealing Solutions business area acquired the US seal distributor AFM Inc., with 45 employees and annual sales of SEK 85 M. This acquisition increases the business area's market presence in the western US.

The Trelleborg Wheel Systems business area signed an agreement relating to the acquisition of the privately owned Australian special tire manufacturer Solid Service Group, with 40 employees and annual sales of SEK 65 M. Solid Service Group is one of the largest distributors of industrial tires in Australia and has its head office in Dandenong, outside Melbourne. The company has branches in Melbourne, Sydney, Brisbane, Adelaide and Perth. The operation is focused on specialized service for industrial customers, primarily within the forklift truck segment. The acquisition creates new opportunities for increased sales of Trelleborg tire products and continued growth in the region.

Competition issues at subsidiaries in US and France

As Trelleborg announced earlier, subsidiaries in France and the US are involved in investigations by competition authorities in the US, EU, the UK and Japan. Trelleborg continues to assist the authorities with their investigations and to take the necessary measures in conjunction with these issues.

Information and assessments announced earlier concerning the possible impact on the Trelleborg Group stand firm. It is still impossible to accurately assess the final financial impact of the authorities' investigations. However, based mainly on the assessment of Trelleborg's external legal representatives, it can be assumed that the ongoing investigations may lead to the Group incurring significant costs of a nonrecurring nature in gradual stages during 2007 and 2008. Currently, all estimations of the possible financial impact involve considerable uncertainty, but the potential combined financial impact could reach amounts that correspond to a predominant proportion of the Group's pre-tax profits for 2006.

Trelleborg takes a very serious view of infringements of competition legislation and already has a very clear and well-communicated set of rules and regulations to ensure conformity to applicable competition laws. However, as a result of these events, the Board of Directors and the management have also decided to significantly reinforce the existing action program with the aim of further increasing knowledge of prevailing competition legislation and to strengthen the Group's internal processes and control system.

Costs for the approved action program will be expensed continuously. Costs for the ongoing action program, combined with the accumulated and estimated costs of the investigations in progress in 2007, were charged to operating profit in an amount of SEK 16 M in the third quarter and SEK 86 M for the January-September period. Costs for the ongoing investigations and for the approved action program are estimated to amount to about SEK 100 M in 2007 and 2008.

Items affecting comparability for calculation of key operating ratios

Items affecting comparability totaling SEK 112 M before tax were excluded from reporting of the Group's key operating ratios for the third quarter. These items affecting comparability comprise the nonrecurring costs described above for the ongoing competition investigation at subsidiaries in an amount of SEK 16 M and restructuring costs of SEK 67 M mainly within Engineered Systems and SEK 28 M in Automotive.

Within Trelleborg Engineered Systems' business unit for moulded components, a decision was made relating to the discontinuation and relocation of the operation from Mörbylånga in Sweden to the business unit's other plants in Sweden and Estonia. The decision is a stage in the process aimed at creating a more efficient production structure with fewer and more specialized units, thereby ensuring cost efficiency for this operation.

Manufacturing in Mörbylånga consists of special polymer components, primarily for heavy trucks. The decision assumes that production is moved to the business unit's other plants in Sweden, principally Forsheda, and to the business unit's plant in Kuressaare, in Estonia. Production in Mörbylånga is expected to continue until the third quarter of 2008. In total, 110 employees in Mörbylånga will be given notice.

Trelleborg's unit in Kuressaare on the island of Saaremaa in Estonia, was acquired in its entirety in April 2007. These operations, which currently employ some 50 persons, will have about 120 employees when the relocation is completed.

The costs for discontinuation and restructuring of the moulded components operation are estimated at about SEK 30 M before tax, of which the major share will affect cash flow during 2007 and 2008. The anticipated continuous cost savings mean that the project in its entirety is expected to have a relatively short payback time.

Furthermore, the number of personnel, mainly within administration, has been reduced at other units within the moulded components operation.

A decision was also taken regarding the first step in the specialization of plants within the area of coated fabrics with the aim of securing the synergies that were already identified in conjunction with the acquisition of Reeves Brothers Inc.

Since autumn 2006, an action program has also been under way in the Automotive business area. This involves a strategic and operational review and is aimed at improving profitability and the business area's strategic position. The total action program for the Automotive business area, which was initiated in November 2006, is expected to amount to about SEK 875 M before tax and about SEK 700 M after tax. The positive annual earnings effect is expected to be approximately SEK 175 M before tax and SEK 115 M after tax on full implementation. The program is expected to have a gradual positive earnings effect, mainly from the second half of 2008.

During 2006 and to date in 2007, within the framework of the program, decisions were taken on the closure of two plants in the UK (Trowbridge and West Thurrock), a plant in Italy (Fergom) and efficiency measures within European operations, comprising, for example, a plant in Mannheim, in Germany, transfer of resources from Western Europe to Eastern Europe and a shared service concept in Europe. In addition, the Dawson Manufacturing Company, which is 45-percent owned by Trelleborg, decided to close a plant in Dawson, in the US, and relocate production to the company's unit in Benton Harbor, in the US.

The amount of SEK 28 M that affected operating profit in the third quarter comprised ongoing costs within the framework of the earlier announced measures.

Risks/risk management at Trelleborg	Risks in the Group's operations can generally be divided into operational risks relating to business operations and risks related to financing activities. A business operation always runs the risk of lower revenues through the loss
Operational risks	of customers, reduced sales and falling prices as a result of a declining market or intensified competition. The Group is currently exposed to risks in relation to its business activities:
	- Raw materials. Handling of price changes for raw materials and components will remain significant for the Group's earnings moving forward, both positively and negatively. - Structural measures. The Trelleborg Group will also continue to actively initiate improvement programs to strengthen the Group's position and competitiveness. A number of structural measures that are currently in progress are described in this report and are key success factors for the Group. They offer both risks and opportunities. For example, there is a risk that the measures taken will not generate the anticipated outcome, which could be positive or negative. - Acquisitions and integration. The Trelleborg Group has a distinct acquisition strategy. A successful acquisition and integration process creates value. Acquisition and integration of new units always implies risks and opportunities, for example, that costs relating to an acquisition are higher or lower than expected or that future earnings and synergies do not meet or surpass expectations. - Legal issues. From time to time, the Group has ongoing and potential disputes, as well as risks that include responsibility in connection with products sold and so forth. The investigations relating to competition issues at subsidiaries in the US and France that are described in this report carry a risk that the Group could incur considerable costs and that the Group's earnings will be affected. - Capacity utilization. Capacity utilization is currently high and if disruptions or capacity shortages should arise, these could have a negative effect on operations. - Talent Management. The loss of key employees can have various negative effects on the Group's earning ability. The Group works actively with Talent Management to secure key competence for the Group. For further information about the Group's operational and financial risks, risk management and risk exposure, please refer to Trelleborg's Annual Report and www.trelleborg.com.
Nomination committee in Trelleborg AB ahead of 2008 Annual General Meeting	At Trelleborg AB's Annual General Meeting on April 25, 2007, the Chairman of the Board was assigned the task of asking five representatives of the Company's largest shareholders to form a Nomination Committee that will prepare proposals regarding Board members to be presented to the Annual General Meeting for resolution on April 28, 2008. The following persons were asked to participate in the Nominations Committee and agreed: Didrik Normark, Henry and Gerda Dunkers Foundation; Ramsay Brufer, Alecta; Lars Öhrstedt, AFA försäkring; Henrik Didner, Didner & Gerge Aktiefond and KG Lindvall, Swedbank Robur Fonder AB.

Outlook for the fourth quarter of 2007

Outlook for the fourth quarter of 2007 remains unchanged

The outlook for the fourth quarter of 2007 remains unchanged from the outlook for the first three quarters of the year. For general industry, demand is not expected to decline, while the very strong

demand within the Aerospace and Oil/Gas segments will continue. Cutbacks in production, mainly among North American customers, are expected to have adverse effects on automotive-related operations.

Outlook from the interim report on July 24, 2007: The outlook for the third quarter of 2007 remains unchanged from the outlook for the first two quarters of the year. For general industry, demand is not expected to decline, while the very strong demand within the Aerospace and Oil/Gas segments will continue. Cutbacks in production, mainly among North American customers, are expected to have adverse effects on automotive-related operations.

Trelleborg, October 26, 2007 Peter Nilsson President and CEO

____________________________________________________________________

This report was prepared in accordance with IAS 34 Interim Financial Reporting. Effective January 1, 2007, Trelleborg AB applies the following changes established by the IASB and approved by the European Commission:

IAS 1 – Presentation of financial statements

IFRS 7 – Financial instruments

These entail no impact on the company's earnings and position.

In other respects, the same accounting policies and valuation methods are used as those described in the most recent Annual Report. This report has not been reviewed specifically by Trelleborg AB's company auditors.

Trelleborg Engineered Systems

	July - Sep		Jan - Sep		Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Excluding items affecting comparability
Net sales	2 849	2 189	8 734	6 618	11 426	9 310
Operating profit	290	213	860	555	1 110	805
Operating margin (ROS), %	10,1	9,6	9,8	8,3	9,6	8,6
Operating cash flow	298	296	589	433	971	815
Operating cash flow/Operating profit, %	103	139	68	78	87	101
Including items affecting comparability
Operating profit	223	213	793	532	1 030	769
ROS, %	7,8	9,6	9,0	8,0	8,9	8,2

Additional key ratios on pages 16 - 18

Favorable demand in the business area's principal markets	The market trend in a number of the business area's principal markets remained good during the third quarter, and was particularly favorable for products within infrastructure/construction and oil/gas industries.
Increased sales, organic growth of 10 percent	The sales increase in the third quarter is related to growth within all prioritized market segments and completed acquisitions. The organic growth amounted to 10 percent. A significant number of project deliveries occurred within the area of infrastructure/construction, with a strong trend within such product areas as tunnel seals. Several major deliveries were made to the oil/gas segment relating to oil-extraction projects in Brazil and western Africa.
Continued favorable order intake	The order situation was favorable during the quarter. There was a strong trend within such industry-related areas as specialty hoses (for chemicals, petrochemicals, foods, etc.). A number of orders for the Trelleborg developed Elastopipe® (sprinkler-system) offshore product are expected to generated increased sales in 2008.
Investments in capacity expansion proceeding as planned.	The capacity expansion for products to the oil/gas segment is proceeding as planned. The production capacity at the plant in Houston, in the US, for Drill Risers Buoyancies for deep-sea drilling rigs expanded significantly during the year and is expected to be completed during the first six months of 2008. However, the implementation of these capacity expansions entailed disruptions, thereby reducing efficiency during the period, but enabling a long term sales increase.
Relocation and specialization of production increases competitiveness and enables synergies	Within the business unit for moulded components in Sweden, a decision was made during the quarter regarding the discontinuation and relocation of the operation from Mörbylånga in Sweden to other plants in Sweden and Estonia. Costs relating to the closure and restructuring of the moulded components operation are estimated at about SEK 30 M before tax. Furthermore, the number of personal within administration has been reduced at other units within the moulded components operation. A decision was also taken regarding the first step in the specialization of plants within the area of coated fabrics with the aim of securing the synergies that were already identified in conjunction with the acquisition of Reeves in 2006 (see page 6).
Continued strong earnings generation. Earnings increase by 36 percent	The business area continued its strong earnings generation during the third quarter. Operating profit, excluding items affecting comparability, increased by 36 percent, compared with the year-earlier period, while operating margin also increased as a result of favorable demand from several segments, the continued focus of operations and completed acquisitions.

Trelleborg Automotive

		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Excluding items affecting comparability
Net sales	2 455	2 134	7 861	7 199	10 155	9 493
Operating profit	25	-26	164	183	195	214
Operating margin (ROS), %	1,0	neg	2,0	2,4	1,9	2,1
Operating cash flow	108	41	26	94	77	145
Operating cash flow/Operating profit, %	432	neg	16	51	39	68
Including items affecting comparability
Operating profit	-3	-26	-67	183	-316	-66
ROS, %	neg	neg	neg	2,4	neg	neg

Additional key ratios on pages 16 - 18

Car production up in North America, Europe and Asia	During the third quarter, car production in North America rose by 3.5 percent compared with the year-earlier period. In Europe, production increased by 7 percent, primarily driven by increased East European car production (+20 percent). Aisan Car production grew by 9.5 percent. (Source: JD Powers/Tbg).
Organic growth of 16 percent – partially due to an accumulation of inventory in North America and a weak third quarter in 2006	A certain accumulation of inventory in the North American car market had a positive impact on the business area's sales within the antivibration operation, which rose sharply during the third quarter, with organic growth of 16 percent compared with the year-earlier period. Fluid & Acoustic Solutions' sales also increased during the quarter, compared with a weak third quarter in 2006. The sales trend of the business area's antivibration operation remained positive. The antivibration operation in North America continued to capture market shares and growth was also favorable in Asia.
Asian order intake creates growth	The order intake remained healthy during the quarter. This was particularly the case in the Asian market, where major orders were secured in India and China with deliveries set to commence during the latter part of 2008.
Positive operating profit compared with loss in corresponding period of 2006	Operating profit rose during the quarter compared with a loss in the corresponding period in 2006. This was mainly attributable to the earnings improvement within the antivibration operation in North America and Asia. Efficiency within parts of Fluid & Acoustic Solutions also improved somewhat. Raw-material costs were slightly higher than the corresponding period in the preceding year. For the third quarter, net capitalized development costs after amortization amounted to SEK 7 M (income: 11). Development costs for January-September 2007 were SEK 1 M (income: 45). The business area's operating cash flow was strengthened during the quarter. Operating profit excluding depreciation and amortization (EBITDA) improved during the quarter and amounted to SEK 127 M (75). EBITDA for the nine-month period was in line with the corresponding year-earlier period.
Strategic review continues. Three remaining sub-projects defined	Activities within the framework of the business area's strategic and operational review continued during the third quarter. Within the parameters of the review, three sub-projects were defined and are expected to be implemented during the coming quarters. The overview is now being conducted in parallel with growth measures and a focus on establishing global processes.
Roger Johansson New business area President	Roger Johansson, formerly head of General Motors Powertrain Europe with 9,300 employees, assumed his new position as President of the business area during August.

Trelleborg Sealing Solutions

		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Net sales	1 451	1 316	4 404	4 102	5 691	5 389
Operating profit	209	170	645	544	827	726
Operating margin (ROS), %	14,4	13,0	14,7	13,3	14,5	13,5
Operating cash flow	259	277	505	535	764	794
Operating cash flow/Operating profit, %	124	163	78	98	92	109

Additional key ratios on pages 16 - 18

Good demand in prioritized segments	The market conditions for Trelleborg Sealing Solutions within the prioritized industrial segment and the aerospace industry were good during the third quarter. The trend remained favorable in the Asian, European and North American markets. In Europe, this was driven primarily by Germany and Scandinavia.
Gradual reprioritization of segments resulted in increased sales, organic growth of 9 percent	The business area's gradual prioritization of segments with higher growth and better margins led to increased sales in all segments during the quarter. Within the industrial segment, sales grew organically by nearly 8 percent, while the aerospace segment grew by 9 percent. Order intake within the aerospace industry remained extremely healthy and, among other activities, the first deliveries to the Airbus A380 were made. Sales to the automotive sector increased by 10 percent, where the focus on more safety-critical and technology-demanding products resulted in better positioning. All geographical markets enjoyed favorable organic growth. During the third quarter, the business area's strong growth in central Europe and Asia continued, with growth in Asia exceeding 25 percent. Total organic growth for the business area was 9 percent during the quarter.
Alternatives for flexible production and increased sourcing investigated	Due to the high level of capacity utilization and intensified focus on certain segments, an investigation is being conducted into flexible solutions within the business area's production structure and the possibilities of increased sourcing. A number of possible changes were identified and are currently being evaluated.
Strategic acquisition made positive contribution	The acquisition in July of the US distributor AFM Inc. (see page 5) and the acquisition of Hydro-Components R & D Corp (HCRD) earlier in the year contributed positively to the business area's sales and earnings. The companies are now being integrated with the rest of the business area's North American operation. The business area continues to actively search for acquisitions that can complement the operation in terms of geography, technology and customers.
Operating profit up by 23 percent, increased margin	During the third quarter, operating profit and margin increased compared with the third quarter in the preceding year, which was burdened by start-up problems at the business area's new European logistics center. Increased sales, strengthened by an improved product mix and enhanced capacity utilization, also contributed to rise in earnings. The operating margin increased to 14.4 percent during the quarter.

Trelleborg Wheel Systems

		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Excluding items affecting comparability
Net sales	781	728	2 423	2 392	3 176	3 145
Operating profit	64	52	228	182	289	243
Operating margin (ROS), %	8,1	7,1	9,4	7,6	9,1	7,7
Operating cash flow	46	0	76	6	223	153
Operating cash flow/Operating profit, %	72	0	33	3	77	63
Including items affecting comparability
Operating profit	63	52	206	182	246	222
ROS, %	8,0	7,1	8,5	7,6	7,7	7,1

Additional key ratios on pages 16 - 18

The market for industrial tires in Western Europe and North America demonstrated continued growth, but with a slowdown for OEM customers in North America. Demand for agricultural tires in Europe declined slightly during the quarter, but increased in the segment for larger tire dimensions, an area in which Trelleborg is well positioned. Favorable demand in the business area's prioritized segments

Focus and effective product-mix strategy resulted in healthy organic growth of 10 percent

Sales of agricultural/forest tires and industrial tires continued to increase compared with the year-earlier period. To meet the strong demand for agricultural tires, the business area is now investing to further enhance the production structure. Such growth markets as South America also enjoyed an improved rate of sales. Organic growth in the third quarter amounted to 10 percent, excluding the previously announced discontinuation of coated fabrics, compared with the year-earlier period.

The transfer of production of rims for special tires from the business area's unit in Hadsten, in Denmark, to a new unit in Liepaja, in Latvia, is proceeding as planned. The closure of the business area's plant in Hartville, in the US, is also proceeding as planned. However, preparations for expanded industrial tire capacity in Sri Lanka were delayed due to the challenges of generally higher volumes and proactive measures aimed at minimizing the risk of future flooding, such as that which affected the facilities during the second quarter. Nevertheless, it is expected that the consolidation of industrial tire production to Sri Lanka can largely be implemented as planned. Efficiency enhancement of the production platform largely proceeding as planned

Operating profit up by 23 percent In the third quarter, operating profit and the operating margin increased compared with the year-earlier period. This was the result of such factors as continued positive effects from the business area's focusing of the product portfolio. But it was also a consequence of the continued positive effects of the earlier closure of a Trelleborg unit. The availability of forest tires was also significantly improved during the quarter through an enhanced logistics arrangement. Increased operating margin

During the quarter, the business area signed an agreement concerning the acquisition of the privately owned Australian industrial tire distributor Solid Service Group, with approximately 40 employees and annual sales of about SEK 65 M. The acquisition creates new distribution opportunities for Trelleborg's own tire products and for continued growth in the region (see page 5). Acquisition offers growth opportunities in Australia

Financial accounts

						Income Statements
Group		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Continuing operations
Net sales	7 453	6 306	23 172	20 096	30 117	27 041
Cost of goods sold	-5 630	-4 744	-17 396	-15 050	-22 674	-20 328
Gross profit	1 823	1 562	5 776	5 046	7 443	6 713
Selling expenses	-541	-496	-1 664	-1 522	-2 209	-2 067
Administrative expenses	-701	-642	-2 230	-1 996	-2 874	-2 640
Research and development costs	-141	-120	-409	-369	-546	-506
Other operating income/expense	-10	57	-116	140	-300	-44
Profit from part. in assoc. companies	1	3	8	17	13	22
Operating profit	431	364	1 365	1 316	1 527	1 478
Financial income and expenses	-119	-79	-317	-223	-407	-313
Profit before tax	312	285	1 048	1 093	1 120	1 165
Tax	-95	-84	-350	-322	-430	-402
Profit for the period	217	201	698	771	690	763
Discontinued operations
Net sales	-	-	-	246	-3	243
Operating profit	-	-	-	32	-3	29
Profit before tax	-	-	-	30	-2	28
Profit for the period	-	-	-	4	-1	3
Total Net sales	7 453	6 306	23 172	20 342	30 114	27 284
Total operating profit	431	364	1 365	1 348	1 524	1 507
Total profit before tax	312	285	1 048	1 123	1 118	1 193
Total profit for the period	217	201	698	775	689	766
- attributable to minority interest	4	2	11	11	15	15
- attributable to equity holders of the parent	213	199	687	764	674	751
Earnings per share		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK	2007	2006	2007	2006	Sep 2007	2006

SEK	2007	2006	2007	2006	Sep 2007	2006
Continuing operations
Earnings	2,35	2,20	7,60	8,40	7,45	8,25
Discontinued operations
Earnings	-	-	-	0,05	-	0,05
Total
Earnings	2,35	2,20	7,60	8,45	7,45	8,30
Number of shares
Excluding own holdings
End of period	90 357 261	90 357 261	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	90 357 261	90 357 261
Treasury shares
End of period	-	-	-	-	-	-
Average number	-	3 748 733	-	5 060 790	937 183	3 892 915

			Balance Sheets
Group	Sep 30	Sep 30	Dec 31
SEK M	2007	2006	2006
Property, plant and equipment	6 038	5 671	6 008
Intangible assets	9 700	9 038	9 535
Financial assets	963	1 000	1 025
Total non-current assets	16 701	15 709	16 568
Inventories	3 951	3 396	3 604
Current operating receivables	7 453	6 819	6 681
Current interest-bearing receivables	128	75	88
Cash and cash equivalents	515	649	616
Total current assets	12 047	10 939	10 989
Total assets	28 748	26 648	27 557
Shareholders' equity, excluding minority share	9 633	9 974	9 580
Minority share	116	81	107
Total equity	9 749	10 055	9 687
Non-current interest-bearing liabilities	6 204	7 122	6 859
Other non-current liabilities	1 690	1 256	1 521
Total non-current liabilities	7 894	8 378	8 380
Interest-bearing current liabilities	4 407	2 208	3 225
Other current liabilities	6 698	6 007	6 265
Total current liabilities	11 105	8 215	9 490
Total equity and liabilities	28 748	26 648	27 557
Specification of changes in equity	Sep 30	Sep 30	Dec 31
SEK M	2007	2006	2006
Attributable to equity holders of the parent
Opening balance, January 1	9 580	10 041	10 041
Cash flow hedges, net after tax	-	9	1 0
Translation difference	-100	-423	-905
Exchange-rate difference on hedging instruments 1)	8	80	180
Profit for the period	687	764	751
Dividend	-542	-497	-497
Closing balance	9 633	9 974	9 580
Attributable to minority interest
Opening balance, January 1	107	72	72
Acquisitions	4	-	2 6
Translation difference	-3	-2	-5
Profit for the period	11	11	15
Dividend	-3	-	- 1
Closing balance	116	81	107
Sum Closing balance, equity	9 749	10 055	9 687

1) Net after tax

					Cash flow statements
Group		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Operating activities
Operating profit	431	364	1 365	1 316	1 527	1 478
Adjustments for items not included in cash flow:
Amortization, intangible assets	33	29	106	82	138	114
Depreciation, property, plant and equipment	205	194	640	595	848	803
Impairment losses, intangible assets	-	-	31	-	188	157
Impairment losses, property, plant and equipment	-4	-	-8	10	63	81
Provision for restructuring costs	113	-	351	23	427	99
Undistributed result from part. in assoc. companies	-3	-3	-7	18	-13	12
	775	584	2 478	2 044	3 178	2 744
Interest received and other financial items	2	52	8	65	10	67
Interest paid and other financial items	-107	-154	-321	-222	-411	-312
Taxes paid	-49	-41	-256	-157	-419	-320
Cash flow from operating activities before changes in
working capital	621	441	1 909	1 730	2 358	2 179
Cash flow from changes in working capital:
Change in inventories	-112	-87	-328	-215	-380	-267
Change in operating receivables	255	461	-711	-636	-587	-512
Change in operating liabilities	-38	-202	247	304	578	635
Utilization of restructuring provisions	-96	-34	-176	-63	-196	-83
Cash flow from operating activities	630	579	941	1 120	1 773	1 952
Investing activities
Acquisitions	-137	-162	-321	-1 650	-1 766	-3 095
Restructuring measures in acquired entities	-	-17	-3	-33	-11	-41
Disposals 1)	2	-4	127	175	127	175
Capital expenditure in intangible assets	-16	-33	-78	-105	-105	-132
Capital expenditure, property, plant and equipment	-265	-216	-745	-614	-1 111	-980
Sale of non-current assets	28	61	44	81	82	119
Cash flow from investing activities	-388	-371	-976	-2 146	-2 784	-3 954
Financing activities
Change in interest-bearing investments	-40	-475	-12	-464	432	-20
Change in interest-bearing liabilities	-200	408	488	2 000	1 008	2 520
Dividend paid to shareholders	-	-	-542	-497	-542	-497
Dividend paid to minority	-3	-	-3	-	-4	-1
Cash flow from the financing activities	-243	-67	-69	1 039	894	2 002
Cash flow for the period	-1	141	-104	13	-117	0
Cash and cash equivalents:
At beginning of the period	525	505	616	663	649	663
Exchange rate differences	-9	3	3	-27	-17	-47
Cash and cash equivalents at end of period	515	649	515	649	515	616

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

					Group review, continuing operations
		July - Sep		Jan - Sep		Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Continuing operations excluding items affecting comparability
Net sales	7 453	6 306	23 172	20 096	30 117	27 041
EBITDA	777	589	2 484	2 016	3 198	2 730
Operating profit	543	364	1 745	1 339	2 221	1 815
Profit for the period	304	201	999	788	1 278	1 067

Net sales		July - Sep		Jan - Sep		Full year
SEK M	2007	2006	2007 2006		Sep 2007	2006
Continuing operations
Trelleborg Engineered Systems	2 849	2 189	8 734	6 618	11 426	9 310
Trelleborg Automotive	2 455	2 134	7 861	7 199	10 155	9 493
Trelleborg Sealing Solutions	1 451	1 316	4 404	4 102	5 691	5 389
Trelleborg Wheel Systems	781	728	2 423	2 392	3 176	3 145
Eliminations	-83	-61	-250	-215	-331	-296
Total	7 453	6 306	23 172	20 096	30 117	27 041

Operating profit before depreciations (EBITDA)		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	362	270	1 076	727	1 390	1 041
Trelleborg Automotive	127	75	481	481	620	620
Trelleborg Sealing Solutions	254	212	780	673	1 004	897
Trelleborg Wheel Systems	76	73	292	250	376	334
Other companies	-	-3	-8	-6	-10	-8
Group items	-42	-38	-137	-109	-182	-154
Total excluding items affecting comparability	777	589	2 484	2 016	3 198	2 730
Items affecting comparability
Trelleborg Engineered Systems	-48	-	-48	-18	-61	-31
Trelleborg Automotive	-48	-	-221	-	-272	-51
Trelleborg Wheel Systems	-1	-	-22	-	-39	-17
Sale of property	-	-	26	-	26	-
Legal non-recurring items	-16	-	-86	-	-86	-
Total including items affecting comparability	664	589	2 133	1 998	2 766	2 631

		July - Sep		Jan - Sep		Full year
EBITDA, %1)	2007	2006	2007	2006	Sep 2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	12,7	12,3	12,3	10,9	12,0	11,1
Trelleborg Automotive	5,2	3,5	6,1	6,5	6,1	6,4
Trelleborg Sealing Solutions	17,5	16,1	17,7	16,4	17,6	16,6
Trelleborg Wheel Systems	9,7	10,1	12,0	10,5	11,8	10,6
Total excluding items affecting comparability	10,4	9,3	10,7	9,9	10,5	10,0
Including items affecting comparability
Trelleborg Engineered Systems	11,0	12,3	11,7	10,6	11,6	10,8
Trelleborg Automotive	3,3	3,5	3,3	6,5	3,4	5,8
Trelleborg Wheel Systems	9,6	10,1	11,1	10,5	10,6	10,1
Total including items affecting comparability	8,9	9,3	9,2	9,8	9,1	9,6

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

Operating profit		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	290	213	860	555	1 110	805
Trelleborg Automotive	25	-26	164	183	195	214
Trelleborg Sealing Solutions	209	170	645	544	827	726
Trelleborg Wheel Systems	64	52	228	182	289	243
Other companies	-1	-4	-10	-11	-14	-15
Group items	-44	-41	-142	-114	-186	-158
Total excluding items affecting comparability	543	364	1 745	1 339	2 221	1 815
Items affecting comparability
Trelleborg Engineered Systems	-67	-	-67	-23	-80	-36
Trelleborg Automotive	-28	-	-231	-	-511	-280
Trelleborg Wheel Systems	-1	-	-22	-	-43	-21
Sale of property	-	-	26	-	26	-
Legal non-recurring items	-16	-	-86	-	-86	-
Total including items affecting comparability	431	364	1 365	1 316	1 527	1 478

		July - Sep		Jan - Sep		Full year
Operating margin, (ROS) %1)	2007	2006	2007	2006	Sep 2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	10,1	9,6	9,8	8,3	9,6	8,6
Trelleborg Automotive	1,0	neg	2,0	2,4	1,9	2,1
Trelleborg Sealing Solutions	14,4	13,0	14,7	13,3	14,5	13,5
Trelleborg Wheel Systems	8,1	7,1	9,4	7,6	9,1	7,7
Total excluding items affecting comparability	7,3	5,7	7,5	6,6	7,3	6,6
Including items affecting comparability
Trelleborg Engineered Systems	7,8	9,6	9,0	8,0	8,9	8,2
Trelleborg Automotive	neg	neg	neg	2,4	neg	neg
Trelleborg Wheel Systems	8,0	7,1	8,5	7,6	7,7	7,1
Total including items affecting comparability	5,8	5,7	5,9	6,5	5,0	5,4

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

	Oct 2006 -	Oct 2005 -	Full year
Return on capital employed, (ROA) %2)	Sep 2007	Sep 2006	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	17,8	17,5	16,7
Trelleborg Automotive	3,7	5,4	4,0
Trelleborg Sealing Solutions	12,4	10,4	10,9
Trelleborg Wheel Systems	19,0	14,8	16,3
Total excluding items affecting comparability	11,2	9,7	9,8
Including items affecting comparability
Trelleborg Engineered Systems	16,6	16,8	16,1
Trelleborg Automotive	neg	5,4	neg
Trelleborg Wheel Systems	16,3	14,8	15,0
Total including items affecting comparability	7,8	9,6	8,0

2) Operating profit in relation to average capital employed.

Capital employed 3)	Sep 30	Sep 30	Dec 31
SEK M	2007	2006	2006
Continuing operations
Trelleborg Engineered Systems	6 293	4 583	5 920
Trelleborg Automotive	5 240	5 436	5 053
Trelleborg Sealing Solutions	6 702	6 628	6 374
Trelleborg Wheel Systems	1 553	1 555	1 418
Other companies	34	112	129
Group items	45	14	19
Provisions for restructuring measures	-290	-40	-95
Total	19 577	18 288	18 818

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

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

Jan - Sep											Cash flow report
				Capital		Sold non		Change in		Total cash flow
	EBITDA 1)			expenditure		current assets		working capital			Oct 2006-
SEK M	200 7	2006	2007	2006	2007	2006	2007	2006	2007	2006	Sep 2007
Trelleborg Engineered Systems	1 10 8	754	-276	-172	12	10	-255	-159	589	433	971
Trelleborg Automotive	507	532	-292	-348	12	3	-201	-93	26	94	77
Trelleborg Sealing Solutions	796	690	-120	-115	22	57	-193	-97	505	535	764
Trelleborg Wheel Systems	301	259	-100	-80	1	1	-126	-174	76	6	223
Other companies	-8	-6	-	-	-	-	-5	-6	-13	-12	-15
Group items	-226	-189	-35	-4	-3	10	-12	-18	-276	-201	-361
Operating cash flow	2 478	2 040	-823	-719	44	81	-792	-547	907	855	1 659
Utilization of restructuring provisions									-179	-96	-207
Dividend paid to minority									-3	-	-3
Financial items									-313	-157	-401
Paid tax									-256	-157	-419
Free cash flow									156	445	629
Acquisitions									-321	-1 650	-1 766
Disposals 2)									127	175	127
Dividend paid to shareholders									-542	-497	-542
Sum net cash flow									-580	-1 527	-1 552
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
Net debt, opening balance									-9 350	-7 236	-8 558
Net cash flow for the period									-580	-1 527	-1 552

Net cash flow for the period	-580	-1 527	-1 552
Borrowing costs	1	-1	-
Exchange rate differences	-36	206	145
Net debt, closing balance	-9 965	-8 558	-9 965

Acquisitions, January - September	2007	2006
SEK M
Purchase price 1)	314	1 650
Acquisition expenses	7	-
Net realizable value of acquired assets	100	559
Goodwill	221	1 091
Acquired assets and liabilities:
Property, plant and equipment	61	280
Intangible assets	-	2
Deferred tax	20	18
Associated companies	-4	-1
Operating assets	70	523
Minority share	-	102
Operating liabilities	-47	-365
Total	100	559
Profit for the period	13	104
Profit for the period in acquired entities January - September	14	123

1) The acquisitions during the third quarter are presented on page 5

Parent Company

Parent company in figures Loss before tax in Trelleborg AB, the Parent Company of the Trelleborg Group, amounted to SEK 561 M (profit: 273), during the period January – September. As a result of the approved lower internal dividends from subsidiaries and a lower level of net interest income, earnings were adversely impacted compared with the preceding year. No sales were made. Investments amounted to SEK 27 M (4). The number of employees at the end of the period was 85 (78). Risks/risk management within Trelleborg For information pertaining to financial and operational risk management within Trelleborg, refer to the Trelleborg Annual Report and www.trelleborg.com, and pages 5-7 of this report, where overall significant events for the January – September 2007 period are reported.

Parent company		July - Sep		Jan - Sep	Oct 2006 -	Full year
SEK M	2007	2006	2007	2006	Sep 2007	2006
Administrative expenses	-120	-61	-314	-234	-392	-312
Other operating income	46	21	217	211	244	238
Other operating expenses	-	0	-	-1	0	-1
Operating profit	-74	-40	-97	-24	-148	-75
Financial income and expenses	-246	-107	-464	297	-664	97
Profit before tax	-320	-147	-561	273	-812	22
Tax	91	48	171	95	269	193
Profit for the period	-229	-99	-390	368	-543	215

		Balance Sheets
Parent company	Sep 30	Sep 30	Dec 31
SEK M	2007	2006	2006
Property, plant and equipment	29	10	7
Intangible assets	9	12	10
Financial assets	27 670	27 595	28 420
Total non-current assets	27 708	27 617	28 437
Current operating receivables	62	57	80
Current interest-bearing receivables	1 357	891	1 906
Cash and cash equivalents	2	0	0
Total current assets	1 421	948	1 986
Total assets	29 129	28 565	30 423
Shareholders' equity, excluding minority share	6 539	7 064	7 601
Total equity	6 539	7 064	7 601
Non-current interest-bearing liabilities	137	337	121
Other non-current liabilities	4	7	4
Total non-current liabilities	141	344	125
Interest-bearing current liabilities	22 366	21 081	22 623
Other current liabilities	83	76	74
Total current liabilities	22 449	21 157	22 697
Total equity and liabilities	29 129	28 565	30 423

Income Statements

INVITATION to telephone conference on October 26, at 9.30 a.m. CET

A telephone conference will be held on October 26 at 9:30 a.m. CET. Call +44 (0)20 7806 1967 or +46 (0)8 5352 6407 and state the password "Trelleborg." Presentation materials will be available at www.trelleborg.com from about 30 minutes prior to the commencement of the conference. The conference will be recorded and will be available for three days following the conference on tel. +44 (0)20-7806 1970 or +46 (0)8 5876 9441, code 264973#.

Calendar

Year-end report 2007 February 15, 2008 Interim report for the first quarter 2008 April 28, 2008 Annual General Meeting April 28, 2008

Contact

Bo Jacobsson, Chief Financial Officer Phone: +46 (0)410-670 99, Mobile: +46 (0)70-685 65 60 bo.jacobsson@trelleborg.com

Mikael Byström, Senior Vice President, Investor Relations

Phone: +46 (0)410-670 37, Mobile: +46 (0)708-55 21 69 mikael.bystrom@trelleborg.com

Viktoria Bergman, Senior Vice President, Corporate Communications

Phone: +46 (0)410-670 94, mobile: +46 (0)708-47 57 33 viktoria.bergman@trelleborg.com

Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group may be ordered from: Trelleborg AB, Corporate Communications, PO Box 153, SE-231 22 Trelleborg, Sweden, 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 Phone: +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.