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Trelleborg — Earnings Release 2011
Jul 20, 2011
2985_ir_2011-07-20_d74ea9e1-984d-4c82-8b10-223c26f13eb7.pdf
Earnings Release
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Second quarter 2011
President and CEO Peter Nilsson
"Demand during the quarter remained favorable in most segments. We are continuing to enhance our market positions. Growth was highly satisfactory, notably in China and India. Organic sales rose 13 percent. Operating profit, excluding items affecting comparability, increased to SEK 751 M, with the EBITDA margin exceeding our financial target and totaling 12.8 percent.
Higher raw material costs have been generally compensated by higher sales volumes, price adjustments and other measures. We are continuing to focus our operations and raise our presence in selected profitable segments. Two acquisitions and one divestment were completed during the period."
Continuing operations:
- Net sales during the second quarter of 2011 rose to SEK 7,583 M (7,187). Organic sales increased 13 percent (22).
- Operating profit totaled SEK 706 M (643). Items affecting comparability amounted to an expense of SEK 45 M (expense: 51). Operating profit excluding items affecting comparability was SEK 751 M (694).
- The EBITDA margin, excluding items affecting comparability, was 12.8 percent (13.2).
- Net profit was SEK 469 M (415), and earnings per share increased to SEK 1.70 (1.50). Excluding items affecting comparability, earnings per share were SEK 1.85 (1.65).
- Operating cash flow was SEK 467 M (792). Free cash flow was SEK 230 M (561).
The Group in total:
Consolidated sales amounted to SEK 7,583 M (7,814). Operating profit increased to SEK 704 M (483).
| Key ratios, continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun |
|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 |
| Net sales | 7,583 | 7,187 | 14,809 | 13,743 |
| Operating profit | 706 | 643 | 1,351 | 1,131 |
| Net profit | 469 | 415 | 892 | 723 |
| Earnings per share, SEK | 1.70 | 1.50 | 3.25 | 2.60 |
Market outlook for the third quarter of 2011
Market outlook for the third quarter of 2011. In total, demand is expected to remain in line with the second quarter of 2011, adjusted for seasonal variations.
| The Group, | April – | June 2011 |
|---|---|---|
| ------------ | --------- | ----------- |
| Key ratios, continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Net sales | 7,583 | 7,187 | 14,809 | 13,743 | 28,262 | 27,196 |
| Operating profit | 706 | 643 | 1,351 | 1,131 | 2,256 | 2,036 |
| Profit before tax | 657 | 593 | 1,259 | 1,012 | 2,065 | 1,818 |
| Net profit | 469 | 415 | 892 | 723 | 1,453 | 1,284 |
| - equity holders of the parent | 467 | 410 | 884 | 711 | 1,436 | 1,263 |
| - non-controlling interest | 2 | 5 | 8 | 12 | 17 | 21 |
| Earnings per share, SEK | 1.70 | 1.50 | 3.25 | 2.60 | 5.30 | 4.65 |
| Average number of employees within the Group, of whom | 20,425 | 21,148 | 20,042 | |||
| - women | 5,084 | 5,178 | 5,083 | |||
| - men | 15,341 | 15,970 | 14,959 |
Organic sales increased 13 percent (22)
Net sales. The Trelleborg Group's net sales for the second quarter of 2011 for continuing operations totaled SEK 7,583 M (7,187), up 6 percent (15). Organic sales increased 13 percent (22). Exchange-rate effects were a negative 9 percent (neg: 7), while structural changes represented a positive 2 percent (0).
| Change in net sales, continuing operations | Apr - Jun | Apr - Jun |
|---|---|---|
| % | 2011 | 2010 |
| Organic sales | +13 | +22 |
| Structural changes | +2 | 0 |
| Exchange-rate effects | -9 | -7 |
| Total | +6 | +15 |
The Group's sales to the segments general industry, light vehicles, transport, aerospace, agriculture and infrastructure segments exceeded sales during the second quarter of 2010. Sales in the offshore oil/gas segment were lower than in the year-earlier period.
Compared with the first quarter of 2011, sales to the segments general industry, transport, aerospace, agriculture and infrastructure segments were higher. Sales to the light vehicles segment were in line with those of the first quarter of 2011, while sales to the oil/gas segment were lower.
Operating profit rose to SEK 706 M (643)
Earnings. Operating profit for the quarter increased to SEK 706 M (643). Exchange-rate fluctuations arising from the translation of earnings of foreign Group companies had a negative impact on operating profit of approximately SEK 75 M compared with the corresponding period in 2010. Financial net expenses was SEK 49 M (expense: 50), corresponding to an average interest rate of 3.0 percent (2.5).
Profit before tax increased to SEK 657 M (593). Net profit was SEK 469 M (415). The tax rate was 29 percent (30). Earnings per share were SEK 1.70 (1.50).
Operating profit, excluding items affecting comparability, increased to SEK 751 M (694). Items affecting comparability pertaining to restructuring costs for previously announced and ongoing measures had an adverse impact of SEK 45 M (51) on earnings. The operating margin was 9.9 percent (9,6). Operating profit before depreciation and amortization (EBITDA) increased to SEK 973 M (955). The EBITDA margin was 12.8 percent (13.2). Earnings per share were SEK 1.85 (1.65).
The EBITDA margin was 12.8 percent (13.2)
| Operating key ratios, continuing operations excl. | ||||||
|---|---|---|---|---|---|---|
| items affecting comparability | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Operating profit | 751 | 694 | 1 405 | 1 209 | 2 482 | 2 286 |
| Earnings per share, SEK | 1,85 | 1,65 | 3,40 | 2,85 | 5,90 | 5,35 |
| Operating margin (ROS), % | 9,9 | 9,6 | 9,4 | 8,7 | 8,7 | 8,4 |
| EBITDA, % | 12,8 | 13,2 | 12,4 | 12,5 | 12,1 | 12,1 |
Higher raw materials costs had an adverse impact on earnings, primarily in the Trelleborg Automotive business area. Prices for raw materials are expected to remain volatile, with prices for certain materials expected to continue rising. Operating profit was also adversely affected by impairment losses on inventories and other assets, of a historical nature, at Trelleborg Automotive in Brazil in connection with a review that was conducted due to the divestment of brake hose operations in Brazil.
Return on shareholders' equity was 12.8 percent (11.9)
Return. The return on shareholders' equity, excluding items affecting comparability, for the past twelve month period was 12.8 percent (full year 2010: 11.9), while the return on capital employed, excluding items affecting comparability, was 13.2 percent for the same period (full year 2010: 11.9).
| Continuing operations |
Excl. items affecting comparability |
|||||
|---|---|---|---|---|---|---|
| Jan - Jun | Full year | Jan - Jun | Full year | |||
| % | 2011 | 2010 | 2011 | 2010 | ||
| Return on capital employed, ROCE | 12.1 | 10.8 | 13.2 | 11.9 | ||
| Return on shareholders' equity | 11.5 | 10.4 | 12.8 | 11.9 |
Free cash flow totaled SEK 230 M (561)
Cash flow. Operating cash flow for the period was SEK 467 M (792). Despite continuing favorable effects from the management of working capital, increased volumes and higher raw material costs entailed a rise in working capital, which was partly offset by improved earnings generation. The capital investment level was relatively low, but is expected to rise during the year. Free cash flow was SEK 230 M (561).
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Operating cash flow | 467 | 792 | 285 | 870 | 1,605 | 2,190 |
| Utilization of restructuring provisions | -88 | -139 | -125 | -204 | -335 | -414 |
| Dividend - non-controlling interest | -2 | -1 | -2 | -1 | -4 | -3 |
| Financial items | -19 | -27 | -224 | -254 | -276 | -306 |
| Paid tax | -128 | -64 | -232 | -126 | -400 | -294 |
| Free cash flow | 230 | 561 | -298 | 285 | 590 | 1,173 |
Debt/equity ratio was 55 percent (64)
Net debt. Compared with the preceding quarter, net debt rose SEK 682 M to SEK 7,070 M (7,958). The net debt was adversely impacted by dividends and acquisitions, but was partly offset by positive free cash flow. The debt/equity ratio was 55 percent (64). Net debt in relation to EBITDA was 2.2 (2.9).
| Change in net debt | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Full year |
|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | 2010 |
| Net debt, opening balance | -6,388 | -8,405 | -6,409 | -8,369 | -8,369 |
| Net cash flow for the period | -510 | 428 | -940 | 26 | 950 |
| Additional payment, disposals | -41 | 77 | 98 | 77 | 77 |
| Disposals | - | 57 | - | 57 | 57 |
| Exchange rate differences | -131 | -115 | 181 | 251 | 876 |
| Net debt, closing balance | -7,070 | -7,958 | -7,070 | -7,958 | -6,409 |
| Debt/equity ratio, % | 55 | 64 | 53 | ||
| Net Debt/EBITDA, R12 | 2.2 | 2.9 | 2.1 |
The Group, January – June 2011
Net sales. The Trelleborg Group's net sales for continuing operations for the first six months of 2011 totaled SEK 14,809 M (13,743), up 8 percent compared with 2010. Organic sales increased 16 percent (17). Exchange rates had a negative impact of 10 percent while structural changes represented a positive impact of 2 percent.
Earnings. Operating profit for the first six months of 2011 amounted to SEK 1,351 M (1,131). Items affecting comparability amounted to an expense of SEK 54 M (expense: 78). Profit before tax totaled SEK 1,259 M (1,012). Net profit was SEK 892 M (723). Earnings per share were SEK 3.25 (2.60).
Cash flow. Operating cash flow during the first six months of 2011 was SEK 285 M (870). Despite continuing favorable effects from the management of working capital, increased volumes and higher raw material costs entailed a rise in working capital, which was partly offset by improved earnings generation.
Capital employed and shareholders' equity. At the end of the period, capital employed totaled SEK 19,388 M, compared with SEK 19,262 M the year-earlier period.
Shareholders' equity at the close of the period amounted to SEK 12,629 M (12,363), excluding non-controlling interests. The equity/asset ratio was 44 percent (42).
Due diligence and contractual process for joint venture progressing as planned
Two acquisitions and one divestment completed
Information on planned joint venture in antivibration operations
Due diligence and contractual process are progressing as planned. Due diligence and contractual process are progressing ahead of the establishment of the new antivibration company. An agreement on the formation of the new company is expected to be signed during the second half of 2011. The transaction is conditional upon the fulfillment of certain conditions and approval by relevant competition authorities.
Background: On January 17, Trelleborg and Freudenberg signed a letter of intent to form a 50/50 joint-venture company for antivibration solutions for light and heavy vehicles. The companies' customer portfolios complement each other favorably, while Trelleborg's broad geographical presence is complemented by Freudenberg's product portfolio. In total, this means that the company will be able to offer automakers worldwide the market's best geographical coverage and the broadest portfolio in antivibration solutions.
The new company will comprise Trelleborg Automotive's operations in antivibration solutions and Freudenberg's corresponding activities, Vibracoustic. Total combined annual sales are estimated at approximately SEK 12 billion, with 8,100 employees in 17 countries.
The part of Trelleborg Automotive that will be included in the joint venture relates to the antivibration business for light and heavy vehicles, which accounts for about 75 percent of sales at Trelleborg Automotive and has annual sales of approximately SEK 6,300 M and some 5,200 employees. Trelleborg Automotive's operations outside the antivibration area are not affected.
Structural changes, April – June 2011
Two acquisitions and one divestment were completed during the quarter.
Acquisition of operations in Silcotech Group. The acquisition was finalized during April, 2011 and strengthens Trelleborg Sealing Solution's position in precision seals and liquid silicone components, primarily for the pharmaceutical industry and medical technology sector, as well as for certain critical electronic applications.
Acquisition of oil/gas operation in Brazil. The acquisition was completed as of April 12, 2011 and offers Trelleborg Engineered Systems a stronger presence in Brazil in the offshore oil/gas sector, primarily in specially designed oil hoses for surface and deep-sea applications.
Divestment of operations in brake hoses. The divestment was completed as of April 5, 2011. The purchaser of this operation is Flexitech, a French company. The operation was formerly part of Trelleborg Automotive business area.
Events after the close of the period
After the close of the period, an agreement was concluded concerning an acquisition. Acquisition agreement
Acquisition of a company active in high-end industrial hoses. As a result of an agreement signed on July 15, Trelleborg Engineered Systems is to broaden its offering in industrial hoses. The agreement covers the acquisition of the French company Bloch, a privately owned high-end industrial hose solution provider, with annual sales of about SEK 70 M and
approximately 20 employees. The agreement encompasses the acquisition of 60 percent of the business with and an option to acquire the remainder.
The company primarily specializes in complete solutions and special couplings for a wide range of industrial hoses that offer protection in particularly demanding environments, such as chemical processing and the food sector. The acquisition will broaden and strengthen Trelleborg's offering in industrial hoses, thereby creating the conditions for future growth.
Other
MTN program. Via Trelleborg Treasury, Trelleborg has contracted the maiden issue within the framework of the Group's Swedish medium-term notes program (MTN program) totaling SEK 3,000 M. The volume of the first issue was EUR 110 M and the issue date was July 11, 2011. The issue has a six year tenor.
New SVP Corporate Communications. Patrik Romberg has been appointed new SVP Corporate Communications at the Trelleborg Group, effective October 1, 2011. He succeeds Viktoria Bergman, who will be leaving on September 30, 2011.
Risk management
Risks/risk management at Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in systems and processes. Trelleborg applies an Enterprise Risk Management process (ERM) with the overall aim 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 economy's effect on demand, supply and price movements of raw materials and components, structural programs and financial business environment risks.
For further information regarding the Group's risks, risk exposure and risk management, refer to the Trelleborg Annual Report and www.trelleborg.com.
The Group's market outlook
Market outlook for the third quarter of 2011. In total, demand is expected to remain in line with the second quarter of 2011, adjusted for seasonal variations.
Outlook as presented in the interim report of April 20, 2011: Market utlook for the second quarter of 2011. In total, demand is expected to remain in line with or somewhat better than the first quarter of 2011, adjusted for seasonal variations.
Trelleborg, July 20, 2011 Board of Directors of Trelleborg AB (publ)
_____________________________________________________________
This report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable rules of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with chapter 9 of the Annual Accounts Act, Interim Reports. Unless otherwise stated, the accounting policies applied by the Group and Parent Company correspond to the accounting policies applied in the preparation of the most recent annual report.
This report has been subject to special review by the company's auditors (refer to page 20).
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Excluding items affecting comparability | ||||||
| Net sales | 2,596 | 2,629 | 4,992 | 5,059 | 9,986 | 10,053 |
| Operating profit | 226 | 263 | 404 | 421 | 833 | 850 |
| Operating margin (ROS), % | 8.7 | 10.0 | 8.1 | 8.3 | 8.3 | 8.5 |
| EBITDA margin, % | 11.6 | 13.4 | 11.2 | 11.8 | 11.5 | 11.8 |
| Operating cash flow | 43 | 197 | -19 | 126 | 579 | 724 |
| Including items affecting comparability | ||||||
| Operating profit | 206 | 235 | 386 | 379 | 726 | 719 |
| ROS, % | 7.9 | 8.9 | 7.7 | 7.5 | 7.3 | 7.2 |
Trelleborg Engineered Systems
Additional key ratios on pages 14 - 17
Market trend. Demand for components for general industry during the period was higher than during the year-earlier period.
In the project-related segments of infrastructure and offshore oil/gas, activity and order bookings increased gradually.
Net sales. Net sales declined 1 percent during the quarter compared with the year-earlier period. Organic sales increased 6 percent. Exchange-rate effects were a negative 8 percent, while structural changes represented a positive 1 percent.
Operating profit and cash flow. Operating profit and operating margin during the quarter declined from the year-earlier period. Operating profit was affected negatively by start-up costs following an acquisition and a new presence in Brazil and lower sales in offshore oil /gas, which were significantly strong during second quarter of 2010.
Cash flow was lower during the quarter compared with the year-earlier period, mainly as a result of slightly lower earnings and higher tied-up working capital.
Other. The acquisition of an offshore oil /gas operation in Brazil was completed during the period (refer to page 5). Investments in Brazil are continuing.
The business area secured a major order for two hose systems, Trelline™ – OOL, for applications in deep water. The systems will be utilized in oil projects offshore to Angola. Most of the deliveries will be effected during 2012/2013.
After the period, the business area signed an agreement covering the acquisition of Bloch, a privately owned French company active in high-end industrial hoses (refer to page 5).
Structural changes, among others in Sweden, aimed at enhancing operational efficiency are progressing as planned. Additional measures that can increase the performance of the business area are continuously analyzed.
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Excluding items affecting comparability | ||||||
| Net sales | 2,295 | 2,268 | 4,586 | 4,388 | 8,758 | 8,560 |
| Operating profit | 108 | 175 | 223 | 312 | 440 | 529 |
| Operating margin (ROS), % | 4.6 | 7.5 | 4.7 | 7.0 | 4.9 | 6.0 |
| EBITDA margin, % | 7.9 | 11.7 | 8.0 | 11.3 | 8.7 | 10.4 |
| Operating cash flow | 130 | 328 | 6 | 432 | 214 | 640 |
| Including items affecting comparability | ||||||
| Operating profit | 91 | 155 | 198 | 291 | 359 | 452 |
| ROS, % | 3.9 | 6.6 | 4.2 | 6.5 | 4.0 | 5.1 |
Trelleborg Automotive
Additional key ratios on pages 14 - 17
Market trend. Global production of light vehicles declined somewhat compared with the same period in 2010. The decrease was primarily driven by the effects of the Japanese earthquake, which adversely affected production in both Japan and North America. Production in Europe, however, showed a slight increase.
Net sales. Net sales during the quarter rose 1 percent compared with the year-earlier period. Organic sales increased 13 percent. Exchange-rate effects had a negative impact of 10 percent and structural changes a negative impact of 2 percent.
Operating profit and cash flow. Operating profit was affected negatively by increased raw materials costs. Underlying profitability has steadily improved in pace with volume increases, improved productivity and improved compensation for raw materials.
Operating profit was also adversely affected by impairment losses on inventories and other assets, of a historical nature, at Trelleborg Automotive in Brazil in connection with a review that was conducted due to the divestment of brake hose operations in Brazil.
Operating cash flow was charged with the lower earnings and higher tied-up working capital.
Other. The business area progressed better than the underlying market, notably in Europe, thanks to a favorable product mix and a high level of innovation. Its market position improved thanks to order bookings, which creates a solid long-term base for the future.
Due diligence and contractual process are progressing ahead of the establishment of the new antivibration company (refer to page 5).
The divestment of brake hose operations was finalized during the period (refer to page 5).
A new R&D center in Shanghai was opened recently. The center offers state-of-the-art technology relating primarily to noise and vibration-damping brake solutions for passenger vehicles.
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Excluding items affecting comparability | ||||||
| Net sales | 1,735 | 1,522 | 3,368 | 2,872 | 6,279 | 5,783 |
| Operating profit | 378 | 251 | 693 | 422 | 1,147 | 876 |
| Operating margin (ROS), % | 21.8 | 16.5 | 20.6 | 14.7 | 18.3 | 15.1 |
| EBITDA margin, % | 24.4 | 19.7 | 23.2 | 18.1 | 21.2 | 18.5 |
| Operating cash flow | 330 | 237 | 491 | 369 | 1,007 | 885 |
| Including items affecting comparability | ||||||
| Operating profit | 371 | 251 | 683 | 417 | 1,120 | 854 |
| ROS, % | 21.4 | 16.5 | 20.3 | 14.5 | 17.8 | 14.8 |
Trelleborg Sealing Solutions
Additional key ratios on pages 14 - 17
Market trend. Strong demand continued in all major market segments and geographic areas compared with the second quarter of 2010.
Net sales. Net sales for the quarter rose 14 percent compared with the yearearlier period. Organic sales increased 19 percent. Changes in exchange rates represented a negative impact of 11 percent, while the effects of structural changes accounted for a positive impact of 6 percent.
Operating profit and cash flow. Operating profit improved significantly compared with the year-earlier period as a result of higher volumes, improved productivity and an improved product mix.
Operating cash flow remained strong particularly due to improved earnings generation and continued efficient management of working capital.
Other. Expansion in China and India is progressing as planned.
The acquisition of operations in the Silcotech Group was finalized during the period (refer to page 5). Integration of the operations is in progress.
The center of excellence for certain production processes and industrial niche segments in Bangalore, India, will be inaugurated during the fourth quarter of 2011.
Integration of the operations of Lutz Sales, an American distributor of a broad range of precisions seals and customer specific rubber components, which were acquired during the fourth quarter of 2010, is successfully progressing as planned.
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Excluding items affecting comparability | ||||||
| Net sales | 1,006 | 795 | 1,956 | 1,520 | 3,426 | 2,990 |
| Operating profit | 108 | 59 | 204 | 135 | 332 | 263 |
| Operating margin (ROS), % | 10.8 | 7.4 | 10.4 | 8.9 | 9.7 | 8.8 |
| EBITDA margin, % | 13.1 | 10.3 | 12.6 | 12.0 | 12.4 | 12.0 |
| Operating cash flow | 111 | 97 | -42 | 58 | 151 | 251 |
| Including items affecting comparability | ||||||
| Operating profit | 108 | 56 | 204 | 128 | 323 | 247 |
| ROS, % | 10.8 | 7.0 | 10.4 | 8.4 | 9.5 | 8.3 |
Trelleborg Wheel Systems
Additional key ratios on pages 14 - 17
Market trend. Demand in agricultural was significantly higher compared with the year-earlier period, both for OEMs and for the aftermarket.
Demand for industrial tires increased significantly compared with the year-earlier period, especially for OEMs.
Net sales. Net sales during the quarter rose 27 percent compared with the year-earlier period. Organic sales increased 28 percent. Changes in exchange rates had a negative impact of 11 percent, while structural changes had a positive impact of 10 percent.
Operating profit and cash flow. Operating profit increased significantly compared with the second quarter of 2010, primarily as a result of favorable volume growth in the segments for extra large tires and industrial tires, as well as for OEMs. Increased raw material prices have been compensated, but not fully.
Operating cash flow for the quarter was strong, particularly due to improved earnings generation and efficient management of working capital.
Other. Integration of the special tire operation acquired during the first quarter of 2011 in Xingtai in eastern China, primarily agricultural tires, is in progress.
Integration is also continuing of the Watts Tyre Group, which was acquired during the first quarter of 2011.
Financial statements
| Income Statements | ||||||
|---|---|---|---|---|---|---|
| Group | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations | ||||||
| Net sales | 7,583 | 7,187 | 14,809 | 13,743 | 28,262 | 27,196 |
| Cost of goods sold | -5,561 | -5,195 | -10,886 | -10,004 | -20,779 | -19,897 |
| Gross profit | 2,022 | 1,992 | 3,923 | 3,739 | 7,483 | 7,299 |
| Selling expenses | -552 | -542 | -1,095 | -1,065 | -2,154 | -2,124 |
| Administrative expenses | -649 | -626 | -1,246 | -1,216 | -2,520 | -2,490 |
| Research and development costs | -138 | -149 | -284 | -294 | -567 | -577 |
| Other operating income/expenses | 21 | -36 | 48 | -40 | 2 | -86 |
| Profit from part. in assoc. companies | 2 | 4 | 5 | 7 | 12 | 14 |
| Operating profit | 706 | 643 | 1,351 | 1,131 | 2,256 | 2,036 |
| Financial income and expenses | -49 | -50 | -92 | -119 | -191 | -218 |
| Profit before tax | 657 | 593 | 1,259 | 1,012 | 2,065 | 1,818 |
| Tax | -188 | -178 | -367 | -289 | -612 | -534 |
| Net profit | 469 | 415 | 892 | 723 | 1,453 | 1,284 |
| Discontinued operations | ||||||
| Net sales | - | 627 | 44 | 1,125 | 501 | 1,582 |
| Operating profit | -2 | -160 | 258 | -147 | 321 | -84 |
| Profit before tax | -2 | -159 | 258 | -147 | 319 | -86 |
| Net profit | -2 | -141 | 260 | -157 | 316 | -101 |
| Group, total | ||||||
| Net sales | 7,583 | 7,814 | 14,853 | 14,868 | 28,763 | 28,778 |
| Operating profit | 704 | 483 | 1,609 | 984 | 2,577 | 1,952 |
| Profit before tax | 655 | 434 | 1,517 | 865 | 2,384 | 1,732 |
| Total net profit | 467 | 274 | 1,152 | 566 | 1,769 | 1,183 |
| of which attributable to: | ||||||
| - equity holders of the parent | 465 | 269 | 1,144 | 554 | 1,752 | 1,162 |
| - non-controlling interest | 2 | 5 | 8 | 12 | 17 | 21 |
| Earnings per share | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
| SEK | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations | 1.70 | 1.50 | 3.25 | 2.60 | 5.30 | 4.65 |
| Discontinued operations | 0.00 | -0.50 | 0.95 | -0.55 | 1.15 | -0.35 |
| Group, total | 1.70 | 1.00 | 4.20 | 2.05 | 6.45 | 4.30 |
| Number of shares | ||||||
| End of period | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 |
| Average number | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 |
Statements of comprehensive income
| Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Total net profit | 467 | 274 | 1,152 | 566 | 1,769 | 1,183 |
| Other comprehensive income | ||||||
| Cash flow hedges | -37 | -27 | 2 | -26 | 52 | 24 |
| Hedging of net investment | -176 | -92 | 56 | 294 | 654 | 892 |
| Translation difference | 382 | 208 | -164 | -506 | -1,548 | -1,890 |
| Income tax relating to components of other comprehensive income |
49 | 32 | -15 | -70 | -180 | -235 |
| Other comprehensive income, net of tax | 218 | 121 | -121 | -308 | -1,022 | -1,209 |
| Total comprehensive income | 685 | 395 | 1,031 | 258 | 747 | -26 |
| Total profit for the period | ||||||
| - equity holders of the parent | 678 | 388 | 1,024 | 241 | 740 | -43 |
| - non-controlling interest | 7 | 7 | 7 | 17 | 7 | 17 |
Published on July 20, 2011 11 (22)
| Group | Jun 30 | Jun 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2011 | 2010 | 2010 |
| Property, plant and equipment | 5,675 | 6,012 | 5,609 |
| Intangible assets | 10,254 | 10,863 | 9,980 |
| Financial assets | 1,297 | 1,478 | 1,297 |
| Total non-current assets | 17,226 | 18,353 | 16,886 |
| Inventories | 3,914 | 3,572 | 3,433 |
| Current operating receivables | 6,703 | 6,520 | 5,597 |
| Current interest-bearing receivables | 98 | 203 | 100 |
| Cash and cash equivalents | 824 | 800 | 832 |
| Total current assets | 11,539 | 11,095 | 9,962 |
| Assets held for sale | - | - | 466 |
| Total assets | 28,765 | 29,448 | 27,314 |
| Equity holders of the parent | 12,629 | 12,363 | 12,079 |
| Non-controlling interest | 126 | 119 | 117 |
| Total equity | 12,755 | 12,482 | 12,196 |
| Non-current interest-bearing liabilities | 5,672 | 6,003 | 4,343 |
| Other non-current liabilities | 1,121 | 1,237 | 1,138 |
| Total non-current liabilities | 6,793 | 7,240 | 5,481 |
| Interest-bearing current liabilities | 2,542 | 3,077 | 3,162 |
| Other current liabilities | 6,675 | 6,649 | 6,345 |
| Total current liabilities | 9,217 | 9,726 | 9,507 |
| Liabilites held for sale | - | - | 130 |
| Total equity and liabilities | 28,765 | 29,448 | 27,314 |
| Specification of changes in equity | Jun 30 | Jun 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2011 | 2010 | 2010 |
| Attributable to equity holders of the parent | |||
| Opening balance, January 1 | 12,079 | 12,267 | 12,267 |
| Adjustment opening balance | - | -9 | -9 |
| Total comprehensive income | 1,024 | 241 | -43 |
| Dividend | -474 | -136 | -136 |
| Closing balance | 12,629 | 12,363 | 12,079 |
| Attributable to non-controlling interest | |||
| Opening balance, January 1 | 117 | 94 | 94 |
| Adjustment opening balance | - | 9 | 9 |
| Total comprehensive income | 7 | 17 | 17 |
| Acquisition | 4 | - | - |
| Dividend | -2 | -1 | -3 |
| Closing balance | 126 | 119 | 117 |
| Sum total equity, closing balance | 12,755 | 12,482 | 12,196 |
TRELLEBORG AB INTERIM REPORT APRIL - JUNE 2011
Cash flow statements
| Group | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Operating activities | ||||||
| Operating profit | 706 | 643 | 1,351 | 1,131 | 2,256 | 2,036 |
| Adjustments for items not included in cash flow: | ||||||
| Depreciation, property, plant and equipment | 198 | 219 | 390 | 436 | 799 | 845 |
| Amortization, intangible assets | 28 | 36 | 56 | 73 | 128 | 145 |
| Impairment losses, property, plant and equipment | 1 | 1 | 1 | 1 | 38 | 38 |
| Impairment losses, intangible assets | -3 | 7 | -3 | 9 | 8 | 20 |
| Provision for restructuring costs | 43 | 49 | 52 | 76 | 196 | 220 |
| Other, non cash-flow affecting items | -34 | 9 | -38 | 5 | -37 | 6 |
| 939 | 964 | 1,809 | 1,731 | 3,388 | 3,310 | |
| Interest received and other financial items | 4 | 2 | 4 | 4 | 14 | 14 |
| Interest paid and other financial items | -23 | -29 | -228 | -258 | -290 | -320 |
| Taxes paid | -128 | -64 | -232 | -126 | -400 | -294 |
| Cash flow from operating activities before changes in working | ||||||
| capital | 792 | 873 | 1,353 | 1,351 | 2,712 | 2,710 |
| Cash flow from changes in working capital: | ||||||
| Change in inventories | -168 | -115 | -460 | -278 | -653 | -471 |
| Change in operating receivables | -169 | -215 | -868 | -884 | -702 | -718 |
| Change in operating liabilities | 63 | 307 | 158 | 550 | 446 | 838 |
| Utilization of restructuring provisions | -88 | -139 | -125 | -204 | -335 | -414 |
| Cash flow from operating activities | 430 | 711 | 58 | 535 | 1,468 | 1,945 |
| Investing activities | ||||||
| Acquisitions | -344 | -8 | -673 | -9 | -829 | -165 |
| Disposals | 78 | 11 | 505 | -114 | 697 | 78 |
| Capital expenditure, property, plant and equipment | -203 | -160 | -358 | -261 | -873 | -776 |
| Capital expenditure in intangible assets | -7 | - | -13 | -7 | -52 | -46 |
| Sale of non-current assets | 12 | 11 | 17 | 19 | 51 | 53 |
| Cash flow from investing activities | -464 | -146 | -522 | -372 | -1,006 | -856 |
| Financing activities | ||||||
| Change in interest-bearing investments | -123 | -330 | 184 | -11 | 907 | 712 |
| Change in interest-bearing liabilities | 736 | 129 | 768 | 175 | -794 | -1,387 |
| Dividend - equity holders of the parent | -474 | -136 | -474 | -136 | -474 | -136 |
| Dividend - non-controlling interest | -2 | -1 | -2 | -1 | -4 | -3 |
| Cash flow from financing activities | 137 | -338 | 476 | 27 | -365 | -814 |
| Cash flow for the period | 103 | 227 | 12 | 190 | 97 | 275 |
| Cash and cash equivalents: | ||||||
| At beginning of the period | 704 | 558 | 832 | 591 | 800 | 591 |
| Reclassification to assets held for sale | - | - | - | - | -6 | -6 |
| Exchange rate differences | 17 | 15 | -20 | 19 | -67 | -28 |
| Cash and cash equivalents at end of period | 824 | 800 | 824 | 800 | 824 | 832 |
TRELLEBORG AB INTERIM REPORT APRIL - JUNE 2011
Group review
| Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|
| 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| 7,583 | 7,187 | 14,809 | 13,743 | 28,262 | 27,196 |
| 973 | 955 | 1,847 | 1,726 | 3,425 | 3,304 |
| 751 | 694 | 1,405 | 1,209 | 2,482 | 2,286 |
| 502 | 454 | 931 | 783 | 1,622 | 1,474 |
| Net sales | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations | ||||||
| Trelleborg Engineered Systems | 2,596 | 2,629 | 4,992 | 5,059 | 9,986 | 10,053 |
| Trelleborg Automotive | 2,295 | 2,268 | 4,586 | 4,388 | 8,758 | 8,560 |
| Trelleborg Sealing Solutions | 1,735 | 1,522 | 3,368 | 2,872 | 6,279 | 5,783 |
| Trelleborg Wheel Systems | 1,006 | 795 | 1,956 | 1,520 | 3,426 | 2,990 |
| Eliminations | -49 | -27 | -93 | -96 | -187 | -190 |
| Total | 7,583 | 7,187 | 14,809 | 13,743 | 28,262 | 27,196 |
| EBITDA | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations excluding items | ||||||
| affecting comparability | ||||||
| Trelleborg Engineered Systems | 301 | 353 | 560 | 598 | 1,152 | 1,190 |
| Trelleborg Automotive | 183 | 270 | 374 | 502 | 778 | 906 |
| Trelleborg Sealing Solutions | 424 | 300 | 781 | 520 | 1,332 | 1,071 |
| Trelleborg Wheel Systems | 132 | 82 | 247 | 182 | 425 | 360 |
| Group items | -67 | -50 | -115 | -76 | -262 | -223 |
| Total excl. items affecting comparability | 973 | 955 | 1,847 | 1,726 | 3,425 | 3,304 |
| Items affecting comparability | ||||||
| Trelleborg Engineered Systems | -20 | -27 | -18 | -41 | -109 | -132 |
| Trelleborg Automotive | -17 | -20 | -25 | -21 | -59 | -55 |
| Trelleborg Sealing Solutions | -6 | 1 | -9 | -4 | -18 | -13 |
| Trelleborg Wheel Systems | - | -3 | - | -7 | -9 | -16 |
| Group items | - | - | - | -3 | -1 | -4 |
| Total items affecting comparability | -43 | -49 | -52 | -76 | -196 | -220 |
| Total incl. items affecting comparability | 930 | 906 | 1,795 | 1,650 | 3,229 | 3,084 |
| EBITDA | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| % | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations excluding items | ||||||
| affecting comparability | ||||||
| Trelleborg Engineered Systems | 11.6 | 13.4 | 11.2 | 11.8 | 11.5 | 11.8 |
| Trelleborg Automotive | 7.9 | 11.7 | 8.0 | 11.3 | 8.7 | 10.4 |
| Trelleborg Sealing Solutions | 24.4 | 19.7 | 23.2 | 18.1 | 21.2 | 18.5 |
| Trelleborg Wheel Systems | 13.1 | 10.3 | 12.6 | 12.0 | 12.4 | 12.0 |
| Total excl. items affecting comparability | 12.8 | 13.2 | 12.4 | 12.5 | 12.1 | 12.1 |
| Including items affecting comparability | ||||||
| Trelleborg Engineered Systems | 10.8 | 12.4 | 10.9 | 11.0 | 10.4 | 10.5 |
| Trelleborg Automotive | 7.1 | 10.8 | 7.5 | 10.8 | 8.1 | 9.8 |
| Trelleborg Sealing Solutions | 24.1 | 19.8 | 22.9 | 18.0 | 20.9 | 18.3 |
| Trelleborg Wheel Systems | 13.1 | 10.0 | 12.6 | 11.5 | 12.1 | 11.5 |
| Total incl. items affecting comparability | 12.2 | 12.5 | 12.1 | 12.0 | 11.4 | 11.3 |
TRELLEBORG AB INTERIM REPORT APRIL - JUNE 2011
| Operating profit | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations excluding items | ||||||
| affecting comparability | ||||||
| Trelleborg Engineered Systems | 226 | 263 | 404 | 421 | 833 | 850 |
| Trelleborg Automotive | 108 | 175 | 223 | 312 | 440 | 529 |
| Trelleborg Sealing Solutions | 378 | 251 | 693 | 422 | 1,147 | 876 |
| Trelleborg Wheel Systems | 108 | 59 | 204 | 135 | 332 | 263 |
| Group items | -69 | -54 | -119 | -81 | -270 | -232 |
| Total excl. items affecting comparability | 751 | 694 | 1,405 | 1,209 | 2,482 | 2,286 |
| Items affecting comparability | ||||||
| Trelleborg Engineered Systems | -20 | -28 | -18 | -42 | -107 | -131 |
| Trelleborg Automotive | -17 | -20 | -25 | -21 | -81 | -77 |
| Trelleborg Sealing Solutions | -7 | - | -10 | -5 | -27 | -22 |
| Trelleborg Wheel Systems | - | -3 | - | -7 | -9 | -16 |
| Group items | -1 | - | -1 | -3 | -2 | -4 |
| Total items affecting comparability | -45 | -51 | -54 | -78 | -226 | -250 |
| Total incl. items affecting comparability | 706 | 643 | 1,351 | 1,131 | 2,256 | 2,036 |
| Operating margin, (ROS) | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| % | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Continuing operations excluding items | ||||||
| affecting comparability | ||||||
| Trelleborg Engineered Systems | 8.7 | 10.0 | 8.1 | 8.3 | 8.3 | 8.5 |
| Trelleborg Automotive | 4.6 | 7.5 | 4.7 | 7.0 | 4.9 | 6.0 |
| Trelleborg Sealing Solutions | 21.8 | 16.5 | 20.6 | 14.7 | 18.3 | 15.1 |
| Trelleborg Wheel Systems | 10.8 | 7.4 | 10.4 | 8.9 | 9.7 | 8.8 |
| Total excl. items affecting comparability | 9.9 | 9.6 | 9.4 | 8.7 | 8.7 | 8.4 |
| Including items affecting comparability | ||||||
| Trelleborg Engineered Systems | 7.9 | 8.9 | 7.7 | 7.5 | 7.3 | 7.2 |
| Trelleborg Automotive | 3.9 | 6.6 | 4.2 | 6.5 | 4.0 | 5.1 |
| Trelleborg Sealing Solutions | 21.4 | 16.5 | 20.3 | 14.5 | 17.8 | 14.8 |
| Trelleborg Wheel Systems | 10.8 | 7.0 | 10.4 | 8.4 | 9.5 | 8.3 |
| Total incl. items affecting comparability | 9.3 | 8.9 | 9.1 | 8.2 | 7.9 | 7.4 |
| Capital employed | Jun 30 | Jun 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2011 | 2010 | 2010 |
| Continuing operations | |||
| Trelleborg Engineered Systems | 6,578 | 6,612 | 6,062 |
| Trelleborg Automotive | 3,839 | 4,109 | 3,713 |
| Trelleborg Sealing Solutions | 7,048 | 6,953 | 6,545 |
| Trelleborg Wheel Systems | 2,182 | 1,876 | 1,712 |
| Group items | -119 | 6 | -32 |
| Provision for restructuring costs and legal costs | -140 | -294 | -215 |
| Total | 19,388 | 19,262 | 17,785 |
| Return on capital employed, (ROCE) | Jul 2010 - | Jul 2009 - | Full year |
|---|---|---|---|
| % | Jun 2011 | Jun 2010 | 2010 |
| Continuing operations excluding items affecting comparability | |||
| Trelleborg Engineered Systems | 13.0 | 12.1 | 13.2 |
| Trelleborg Automotive | 11.3 | 11.4 | 13.1 |
| Trelleborg Sealing Solutions | 17.1 | 9.0 | 12.9 |
| Trelleborg Wheel Systems | 16.9 | 12.3 | 14.1 |
| Total excluding items affecting comparability | 13.2 | 9.9 | 11.9 |
| Including items affecting comparability | |||
| Trelleborg Engineered Systems | 11.4 | 9.1 | 11.3 |
| Trelleborg Automotive | 9.4 | 10.8 | 11.4 |
| Trelleborg Sealing Solutions | 16.8 | 8.0 | 12.6 |
| Trelleborg Wheel Systems | 16.5 | 11.3 | 13.3 |
| Total including items affecting comparability | 12.1 | 8.4 | 10.8 |
| Cash flow report | Capital | Sold non | Change in | Total cash flow | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA 1) | expenditure | current assets | working capital | Jan - Jun | Jan - Jun | Jul 2010 - | |||||
| SEK M | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | Jun 2011 |
| Trelleborg Engineered Systems | 579 | 618 | -110 | -98 | 5 | 2 | -493 | -396 | -19 | 126 | 579 |
| Trelleborg Automotive | 354 | 523 | -146 | -76 | 6 | 1 | -208 | -16 | 6 | 432 | 214 |
| Trelleborg Sealing Solutions | 792 | 529 | -60 | -40 | 4 | 9 | -245 | -129 | 491 | 369 | 1,007 |
| Trelleborg Wheel Systems | 253 | 188 | -43 | -51 | 1 | 1 | -253 | -80 | -42 | 58 | 151 |
| Group items | -169 | -127 | -12 | -3 | 1 | 6 | 29 | 9 | -151 | -115 | -346 |
| Operating cash flow | 1,809 | 1,731 | -371 | -268 | 17 | 19 | -1,170 | -612 | 285 | 870 | 1,605 |
| Utilization of restructuring provisions | -125 | -204 | -335 | ||||||||
| Dividend - non-controlling interest | -2 | -1 | -4 | ||||||||
| Financial items | -224 | -254 | -276 | ||||||||
| Paid tax | -232 | -126 | -400 | ||||||||
| Free cash flow | -298 | 285 | 590 | ||||||||
| Acquisitions | -673 | -9 | -829 | ||||||||
| Disposals | 505 | -114 | 697 | ||||||||
| Dividend - equity holders of the parent | -474 | -136 | -474 | ||||||||
| Sum net cash flow | -940 | 26 | -16 |
1) Excluding other non cash-flow affecting items
Acquisitions
Acquisitions of operations in the Silcotech Group and of an operation in offshore oil /gas in Brazil were finalized during the quarter. These acquisitions are not deemed to be significant for the Group. Refer also to page 5.
During the first quarter, the acquisition of the Watts Tyre Group, PPL Polyurethane Products and an industrial tire operation in China were completed.
Key ratios per quarter
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations | |||||||||
| Net sales | 7,583 | 7,226 | 6,852 | 6,601 | 7,187 | 6,556 | 6,185 | 5,967 | 6,232 |
| Operating profit | 706 | 645 | 400 | 505 | 643 | 488 | 166 | 338 | 153 |
| Profit for the period | 469 | 423 | 234 | 327 | 415 | 308 | 19 | 202 | 62 |
| Operating cash flow | 467 | -182 | 929 | 391 | 792 | 78 | 845 | 851 | 899 |
| Items aff. comparability in operating profit | -45 | -9 | -118 | -54 | -51 | -27 | -218 | -30 | -92 |
| Operating profit, excl. items aff. comp. | 751 | 654 | 518 | 559 | 694 | 515 | 384 | 368 | 245 |
| EBITDA, %, excl. items aff. comparability | 12.8 | 12.1 | 11.0 | 12.3 | 13.2 | 11.7 | 10.5 | 10.6 | 8.3 |
Net sales by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations | |||||||||
| Trelleborg Engineered Systems | 2,596 | 2,396 | 2,618 | 2,376 | 2,629 | 2,430 | 2,495 | 2,477 | 2,597 |
| Trelleborg Automotive | 2,295 | 2,291 | 2,111 | 2,061 | 2,268 | 2,120 | 1,957 | 1,800 | 1,759 |
| Trelleborg Sealing Solutions | 1,735 | 1,633 | 1,434 | 1,477 | 1,522 | 1,350 | 1,164 | 1,104 | 1,129 |
| Trelleborg Wheel Systems | 1,006 | 950 | 738 | 732 | 795 | 725 | 629 | 630 | 782 |
| Eliminations | -49 | -44 | -49 | -45 | -27 | -69 | -60 | -44 | -35 |
| Total | 7,583 | 7,226 | 6,852 | 6,601 | 7,187 | 6,556 | 6,185 | 5,967 | 6,232 |
EBITDA % by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| % | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations excluding items | |||||||||
| affecting comparability | |||||||||
| Trelleborg Engineered Systems | 11.6 | 10.8 | 11.2 | 12.5 | 13.4 | 10.1 | 10.6 | 11.3 | 9.3 |
| Trelleborg Automotive | 7.9 | 8.2 | 9.9 | 9.1 | 11.7 | 10.8 | 10.1 | 8.9 | 6.5 |
| Trelleborg Sealing Solutions | 24.4 | 21.9 | 18.1 | 19.8 | 19.7 | 16.3 | 15.0 | 13.5 | 6.8 |
| Trelleborg Wheel Systems | 13.1 | 12.1 | 10.4 | 13.8 | 10.3 | 13.8 | 11.3 | 11.9 | 13.8 |
| Total | 12.8 | 12.1 | 11.0 | 12.3 | 13.2 | 11.7 | 10.5 | 10.6 | 8.3 |
Operating profit by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations excluding items | |||||||||
| affecting comparability | |||||||||
| Trelleborg Engineered Systems | 226 | 178 | 214 | 215 | 263 | 158 | 178 | 192 | 153 |
| Trelleborg Automotive | 108 | 115 | 122 | 95 | 175 | 137 | 101 | 65 | 11 |
| Trelleborg Sealing Solutions | 378 | 315 | 216 | 238 | 251 | 171 | 123 | 94 | 22 |
| Trelleborg Wheel Systems | 108 | 96 | 51 | 77 | 59 | 76 | 46 | 52 | 83 |
| Group items | -69 | -50 | -85 | -66 | -54 | -27 | -64 | -35 | -24 |
| Total | 751 | 654 | 518 | 559 | 694 | 515 | 384 | 368 | 245 |
Income Statements
| Group | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations | |||||||||
| Net sales | 7,583 | 7,226 | 6,852 | 6,601 | 7,187 | 6,556 | 6,185 | 5,967 | 6,232 |
| Cost of goods sold | -5,561 | -5,325 | -5,045 | -4,848 | -5,195 | -4,809 | -4,599 | -4,425 | -4,734 |
| Gross profit | 2,022 | 1,901 | 1,807 | 1,753 | 1,992 | 1,747 | 1,586 | 1,542 | 1,498 |
| Selling expenses | -552 | -543 | -548 | -511 | -542 | -523 | -562 | -505 | -551 |
| Administrative expenses | -649 | -597 | -698 | -576 | -626 | -590 | -622 | -547 | -605 |
| Research and development costs | -138 | -146 | -143 | -140 | -149 | -145 | -140 | -137 | -137 |
| Other operating income/costs | 21 | 27 | -22 | -24 | -36 | -4 | -100 | -17 | -52 |
| Profit from part. in assoc. companies | 2 | 3 | 4 | 3 | 4 | 3 | 4 | 2 | 0 |
| Operating profit | 706 | 645 | 400 | 505 | 643 | 488 | 166 | 338 | 153 |
| Financial income and expenses | -49 | -43 | -43 | -56 | -50 | -69 | -70 | -85 | -104 |
| Profit before tax | 657 | 602 | 357 | 449 | 593 | 419 | 96 | 253 | 49 |
| Tax | -188 | -179 | -123 | -122 | -178 | -111 | -77 | -51 | 13 |
| Net profit | 469 | 423 | 234 | 327 | 415 | 308 | 19 | 202 | 62 |
| Discontinued operations | |||||||||
| Net sales | - | 44 | 193 | 264 | 627 | 498 | 570 | 592 | 636 |
| Operating profit | -2 | 260 | 23 | 40 | -160 | 13 | 31 | 33 | 6 |
| Profit before tax | -2 | 260 | 23 | 38 | -159 | 12 | 32 | 35 | -3 |
| Net profit | -2 | 262 | 28 | 28 | -141 | -16 | 73 | 14 | -16 |
| Group, total | |||||||||
| Net sales | 7,583 | 7,270 | 7,045 | 6,865 | 7,814 | 7,054 | 6,755 | 6,559 | 6,868 |
| Operating profit | 704 | 905 | 423 | 545 | 483 | 501 | 197 | 371 | 159 |
| Pofit before tax | 655 | 862 | 380 | 487 | 434 | 431 | 128 | 288 | 46 |
| Total net profit | 467 | 685 | 262 | 355 | 274 | 292 | 92 | 216 | 46 |
| - equity holders of the parent | 465 | 679 | 257 | 351 | 269 | 285 | 87 | 213 | 44 |
| - non-controlling interest | 2 | 6 | 5 | 4 | 5 | 7 | 5 | 3 | 2 |
| Earnings per share | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
| SEK | 2011 | 2011 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 |
| Continuing operations | 1.70 | 1.55 | 0.85 | 1.20 | 1.50 | 1.10 | 0.05 | 0.75 | 0.25 |
| Discontinued operations | 0.00 | 0.95 | 0.10 | 0.10 | -0.50 | -0.05 | 0.30 | 0.05 | -0.05 |
| Group, total | 1.70 | 2.50 | 0.95 | 1.30 | 1.00 | 1.05 | 0.35 | 0.80 | 0.20 |
Parent Company
Income Statements
| Parent company | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2010 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2011 | 2010 | 2011 | 2010 | Jun 2011 | 2010 |
| Administrative expenses | -83 | -87 | -149 | -158 | -329 | -338 |
| Other operating income | 12 | 10 | 21 | 27 | 238 | 244 |
| Operating profit | -71 | -77 | -128 | -131 | -91 | -94 |
| Financial income and expenses | 437 | 924 | 566 | 827 | 566 | 827 |
| Profit before tax | 366 | 847 | 438 | 696 | 475 | 733 |
| Tax | 70 | 46 | 123 | 84 | 175 | 136 |
| Net profit | 436 | 893 | 561 | 780 | 650 | 869 |
Statements of comprehensive income
| Net profit | 436 | 893 | 561 | 780 | 650 | 869 |
|---|---|---|---|---|---|---|
| Other comprehensive income | ||||||
| Fair value | 7 | 11 | -2 | 7 | -13 | -4 |
| Group contributions received | - | - | - | - | 1,366 | 1,366 |
| Group contributions paid | - | - | - | - | -180 | -180 |
| Income tax relating to components of other comprehensive income |
-2 | -3 | - | -2 | -309 | -311 |
| Other comprehensive income, net of tax | 5 | 8 | -2 | 5 | 864 | 871 |
| Total comprehensive income | 441 | 901 | 559 | 785 | 1,514 | 1,740 |
| Balance Sheets | |||
|---|---|---|---|
| Parent company | Jun 30 | Jun 30 | Dec 31 |
| SEK M | 2011 | 2010 | 2010 |
| Property, plant and equipment | 24 | 28 | 26 |
| Intangible assets | 6 | 10 | 9 |
| Financial assets | 34,834 | 34,615 | 34,362 |
| Total non-current assets | 34,864 | 34,653 | 34,397 |
| Current operating receivables | 62 | 32 | 52 |
| Current tax assets | 124 | - | - |
| Current interest-bearing receivables | 24 | 1,014 | 1,078 |
| Cash and cash equivalents | - | - | 5 |
| Total current assets | 210 | 1,046 | 1,135 |
| Total assets | 35,074 | 35,699 | 35,532 |
| Shareholders' equity | 12,695 | 11,654 | 12,609 |
| Total equity | 12,695 | 11,654 | 12,609 |
| Non-current interest-bearing liabilities | 29 | 52 | 52 |
| Other non-current liabilities | 18 | 3 | 14 |
| Total non-current liabilities | 47 | 55 | 66 |
| Interest-bearing current liabilities | 22,266 | 23,907 | 22,768 |
| Other current liabilities | 66 | 83 | 89 |
| Total current liabilities | 22,332 | 23,990 | 22,857 |
| Total equity and liabilities | 35,074 | 35,699 | 35,532 |
Board's assurance and Auditors' report
This interim report presents a fair overview of the operations, position and earnings of the Parent Company and the Group and describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group. Trelleborg, July 20, 2011 Trelleborg AB (publ) Anders Narvinger Heléne Bergquist Hans Biörck Chairman of the Board Board member Board member Claes Lindqvist Sören Mellstig Nina Udnes Tronstad Board member Board member Board member Bo Risberg Mikael Nilsson Peter Larsson Board member Board member Board member Karin Linsjö Peter Nilsson Birgitta Håkansson Board member Board member and Deputy Board member President/CEO Board's assurance
Auditors' report
We have reviewed this report for the period January 1, 2011 to June 30, 2011 for Trelleborg AB. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Reports Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially more limited in scope than an audit conducted in accordance with ISA and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain such assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Trelleborg, July 20, 2011 PricewaterhouseCoopers AB
Mikael Eriksson Eric Salander Authorized Public Accountant Authorized Public Accountant Auditor in charge
Financial definitions
Return on shareholders' equity, %
Net profit for the period, attributable to equity holders of the parent as a percentage of average shareholders' equity, excluding minority interests.
Return on capital employed (ROCE), %
EBIT divided by the average capital employed.
EBITDA
Operating profit excluding depreciation and amortization of PPE and intangible assets.
EBITDA margin, %
EBITDA excluding profit from participation in associated companies as a percentage of net sales.
Free cash flow
Operating cash flow, cash flow from financial items, taxes and the effect of restructuring measures on cash flow.
Net debt
Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents.
Operating cash flow
EBITDA excluding undistributed participation in the earnings of associated companies, investments and changes in working capital but excluding cash flow pertaining to restructuring.
Operating cash flow/operating profit, %
Operating cash flow as a percentage of operating profit.
Earnings per share
Profit for the period, attributable to equity holders of the parent divided by the average number of shares outstanding.
Operating margin (ROS), %
Operating profit excluding participation in the earnings of associated companies as a percentage of net sales.
Operating profit
Operating profit according to profit and loss.
Debt/equity ratio, %
Net debt divided by total equity.
Net debt/EBITDA
Net debt in relation to EBITDA.
Equity/assets ratio, %
Total equity in relation to total assets.
Capital employed
Total assets less interest-bearing financial assets, noninterest-bearing operating liabilities (including pension liabilities). Excluding tax assets/tax liabilities.
Invitation to telephone conference on July 20 at 9:30 am
A telephone conference will be held on July 20 at 9:30 a.m. To participate in the telephone conference, call +46 (0)8-5051 3794 or +44 20 7806 1966. Code: 860566 or "Trelleborg". The conference will also be broadcast on the Internet in real time.
Visit our website at: www.trelleborg.com/sv/Investerare/Presentationer for the Internet link and presentation materials.
Calendar 2011
Interim report July-September October 26 Capital Markets Day (Stockholm) November 30
Calendar 2012 Year-end report February 15 Interim report January-March April 19 Annual General Meeting (Trelleborg) April 19, 5 pm
For further information, please contact: Investors/analysts
Conny Torstensson, VP Investor Relations Tel: +46 (0) 410 - 670 70 Mobil: +46 (0) 734 - 08 70 70 E-mail: [email protected]
Media
Karin Larsson, VP Media Relations Tel: +46 (0) 410 - 670 15 Mobil: +46 (0) 733 - 74 70 15 E-mail: [email protected]
Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group can be ordered from: Corporate Communications, by telephone on +46 (0)410 – 670 09, or can be downloaded from the Group's website: www.trelleborg.com.
Trelleborg AB (publ) Corp. Reg. No. 556006-3421 Box 153, SE- 231 22 Trelleborg Tel: +46 (0)0410-670 00 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, July 20, 2011 at 7:45 a.m.