Trelleborg — Interim / Quarterly Report 2007

Feb 15, 2008

Strong increase in sales and earnings

"We are prioritizing continued improvements in the operational structure and a focus on segments offering healthy long-term profitability," says President and Chief Executive Officer Peter Nilsson.

• The order and delivery scenario remained good in the fourth quarter, with organic growth of 10 percent for both the quarter and full year.
• Operating profit in continuing operations, excluding items affecting comparability, increased by 10 percent during the quarter and 25 percent for the full year. Three of the four business areas reported increases in both operating profit and operating margins during the year, as a result of such factors as healthy volumes and the continued successful focus on more profitable segments.
• Activities within the framework of Trelleborg Automotive's strategic and operational review continued during the fourth quarter. Among other actions, a unit in the UK was divested.
• The Group is continuing to assist the authorities in the ongoing competition investigations, which are expected to be completed during 2008.

October - December	Group			Continuing operations excl. items affecting comparability
SEK M	2007	2006	2007	2006
Net sales	7 799	6 945	7 762	6 905
Operating profit	342	159	524	477
Profit for the period	140	-9	278	280
Earnings per share, SEK 1)	1,50	-0,15	3,00	3,05

January - December
SEK M	2007	2006	2007	2006
Net sales	30 971	27 284	30 810	26 875
Operating profit	1 707	1 507	2 274	1 820
Profit for the period	838	766	1 282	1 072
Earnings per share, SEK 1)	9,10	8,30	14,00	11,70

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

Continued growth in main markets

Outlook for the first quarter of 2008. Continued favorable growth is expected within most of the Group's market segments. For such segments as Aerospace and Offshore Oil/Gas, demand is expected to remain highly robust.

For automotive-related operations, the North American market is expected to be weaker than in 2007, while the European market is expected to remain unchanged.

Dividend of SEK 6.50 (6.00) per share proposed

Dividend proposal. The Board of Directors and the President propose a cash dividend of SEK 6.50 (6.00) per share.

Key ratios	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Net sales	7 799	6 945	30 971	27 284
Operating profit	342	159	1 707	1 507
Profit before tax	220	70	1 268	1 193
Profit for the period	140	-9	838	766
- attributable to minority interest	6	4	17	15
- attributable to equity holders of the parent	134	-13	821	751
Earnings per share, SEK 1)	1,50	-0,15	9,10	8,30
Average number of employees, of whom			25 158	22 506
- women			6 431	5 485
- men			18 727	17 021

Operating key ratios		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations excluding items affecting comparability
Net sales	7 762	6 905	30 810	26 875
Operating profit	524	477	2 274	1 820
Profit before tax	403	387	1 836	1 507
Profit for the period	278	280	1 282	1 072
Earnings per share, SEK 1)	3,00	3,05	14,00	11,70
EBITDA, %	10,1	10,2	10,6	10,1
Operating margin (ROS), %	6,7	6,8	7,3	6,7

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

The Group's key figures

October – December 2007

Net sales. During the fourth quarter of 2007, the Trelleborg Group's net sales amounted to SEK 7,799 M (6,945), an increase of 12 percent. Organic growth was 10 percent. Based on comparable exchange rates, sales growth amounted to 13 percent.

Operating profit and earnings per share. During the quarter, operating profit for the Group amounted to SEK 342 M (159). Profit before tax amounted to SEK 220 M (70). Net profit was SEK 140 M (loss: 9). Earnings per share amounted to SEK 1.50 (loss: 0.15).

The increase in operating profit compared with the year-earlier period was due to the fourth quarter of 2006 containing higher costs for items affecting comparability and also to market conditions remaining favorable and positive effects from implemented acquisition and efficiency enhancing measures.

Operating profit was adversely affected by restructuring costs and impairment losses amounting to SEK 178 M (314), or SEK 134 M (285) after tax. These costs derived from the action programs under way in the Trelleborg Automotive, Trelleborg Engineered Systems and Trelleborg Wheel Systems business areas. The divested operations generated a combined loss of SEK 4 M (loss: 3). The Group's key operating figures do not include items affecting comparability and discontinued operations.

Fourth-quarter organic growth of 10%

Items affecting comparability amounted to SEK 178 M during the quarter

January – December 2007

Net sales for full-year 2007 rose 14%

Net sales. The Group's full-year net sales amounted to SEK 30,971 M (27,284), up 14 percent. Organic growth was 10 percent. Based on comparable exchange rates, sales growth amounted to 16 percent.

Change in net sales	Jan - Dec	Jan - Dec
%	2007	2006
Or ganic growth	+10	+6
A cquisitions / divestments	+6	+7
C urrency impact	-2	-
To tal	+14	+13

Earnings per share increased to SEK 9.10 (8.30) during the year

Operating profit and earnings per share. Operating profit for the Group increased to SEK 1,707 M (1,507). Net financial income and expense amounted to an expense of SEK 439 M (expense: 313), corresponding to 4.4 percent (3.6) of the average net debt outstanding during the year.

Earnings before tax were SEK 1,268 M (1,193). Earnings after tax amounted to SEK 838 M (766) and earnings per share to SEK 9.10 (8.30).

Operating profit was adversely affected by restructuring costs and impairment losses from action programs totaling SEK 498 M before tax, of which SEK 382 M was attributable to the action program within Trelleborg Automotive. Nonrecurring costs pertaining to the ongoing competition investigation of subsidiaries had an adverse impact of SEK 86 M on operating profit. A capital gain, recorded in the first quarter, from the sale of a property in Stockholm, had a positive effect of SEK 26 M before tax on operating profit.

Operating profit during January-December was charged SEK 558 M (337) before tax for these items affecting comparability, or SEK 435 M (304) after tax. A loss of SEK 9M (profit: 24) was reported for discontinued operations. Items affecting comparability and discontinued operations have been excluded from the reporting of the Group's key operating figures.

The return on both capital employed and shareholders' equity increased during the year

Balance sheet, cash flow and investments. The investment level for the January-December period was SEK 1,336 M (1,112). Capital employed at year-end amounted to SEK 19,853 M (18,818). The increase was primarily attributable to acquisitions and an increase in tied-up working capital, due to the achieved sales increases. The Group's free cash flow for the period amounted to SEK 518 M (905).

Change in net debt		Jan - Dec
SEK M	2007	2006
Net debt, opening balance	-9 350	-7 236
Net cash flow for the period	-513	-2 499
Borrowing costs	2	-2
Exchange rate differences	-232	387
Net debt, closing balance	-10 093	-9 350

Net debt amounted to SEK 10,093 M (9,350). The debt/equity ratio at year-end was 100 percent (96). The equity/assets ratio was 34 percent (35).

		Jan - Dec
	2007	2006
Net debt, SEK M	10 093	9 350
Debt/equity ratio, %	100	96
Net debt / EBITDA 1), multiple	3,1	3,4
EBITDA 1) / Financial income and exp., multiple	7,5	8,7
Free cash flow, MSEK	518	905

1) Continuing operations excluding items affecting comparability

Jan - Dec	Group Continuing operations excl. items affecting comparability
%	2007	2006	2007	2006
R eturn on capital employed (ROCE)	8,7	8,1	11,5	9,9
R eturn on shareholders' equity	8,4	7,6	13,0	10,8

Shareholders' equity per share (90.4 million shares) at year-end amounted to SEK 110 (106). The return on capital employed was 8.7 percent (8.1).

The Group's key operating figures

October – December 2007

Earnings and margin. For continuing operations, excluding items affecting comparability, operating profit rose 10 percent to SEK 524 M (477).

The increase was attributable to continued favorable market conditions within such segments as Aerospace, Offshore Oil/Gas, Infrastructure/ Construction and General Industry and to a successful concentration of operations and increased sales.

Exchange-rate fluctuations from the translation of foreign Group companies' earnings had a negative impact of about SEK 13 M on operating profit during the quarter, compared with the year-earlier period. Changes in exchange rates from the flow of transactions are assessed as having had a marginal impact on total Group earnings.

Costs within Group Items were adversely affected by an increase in legal expenses, slightly higher current costs and a rise in provisions for bonuses.

The operating margin was 6.7 percent (6.8). Operating profit before depreciation (EBITDA) increased during the quarter to SEK 793 M (713). The EBITDA margin during the quarter was 10.1 percent (10.2).

The Group's profit before tax, excluding items affecting comparability, rose to SEK 403 M (387) and net profit amounted to SEK 278 M (280).

Earnings per share amounted to SEK 3.00 (3.05).

January – December 2007

Earnings and margin. For continuing operations, excluding items affecting comparability, operating profit rose 25 percent to SEK 2,274 M (1,820). Exchangerate fluctuations from the translation of foreign Group companies' earnings had a negative impact of about SEK 48 M on full-year operating profit, compared with 2006.

Operating profit during the quarter rose 10%

EBITDA increased during the quarter to SEK 793 M (713)

Both the operating margin and the EBITDA margin increased during the year

TRELLEBORG AB YEAR-END REPORT JANUARY - DECEMBER 2007

Profit before tax from continuing operations, excluding items affecting comparability, rose to SEK 1,836 M (1,507), and net profit to SEK 1,282 M (1,072). The tax rate was 30 percent (29). Operating profit before depreciation (EBITDA) increased during the year to SEK 3,276 M (2,726). The EBITDA margin was 10.6 percent (10.1) and the operating margin 7.3 percent (6.7). Earnings per share rose 20 percent to SEK 14.00 (11.70).

The Group's full-year operating cash flow rose by 8 percent to SEK 1,718 M (1,594). Within the operating cash flow, the increase in profit generation was offset by a rise in tied-up working capital due to the sales increase.

	Jan - Dec
	2007	2006
O perating cash flow, SEK M	1 718	1 594
Ope rating cash flow / operating profit %	76	88
O perating cash flow per share, SEK	19,00	17,65

Earnings per share rose to SEK 14.00

Other

Two acquisitions were completed during the fourth quarter

Automotive business divested

annual sales of approximately SEK 65 M. During the quarter, Trelleborg Automotive divested its operations in Coventry, in the UK. The divestment was part of the business area's strategic and operational action program. The operations conducted in Coventry were a part of the antivibration business and mainly comprise the production of airsprings. The operations have approximately 110 employees and generated sales of about SEK 150 M in 2006 and reported a loss. The divestment resulted in a book capital loss of SEK 83 M before taxes during the fourth quarter but is expected to have a positive impact on cash flow.

In November, the Trelleborg Sealing Solutions business area acquired the US seal distributor Sealing Solutions Inc., with approximately 40 employees and annual sales of about SEK 100 M. Sealing Solutions Inc is a leading US distributor of sealing products, primarily to the aerospace industry and industrial OEM companies. This company, combined with the two previous acquisitions completed during the year,

During the fourth quarter, Trelleborg Wheel Systems completed the acquisition of the Australian company, Solid Service Group, which has about 40 employees and

Acquisitions and divestments. 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 play a key role.

further strengthens the business area's presence in North America.

Trelleborg Group continues to assist the authorities in the ongoing competition investigations

The investigations are

completed during 2008

expected to be

Competition investigations at subsidiaries in the US and France. During the year, two of Trelleborg's subsidiaries in France and the US became the subject of investigations by competition authorities in the US, EU, UK, Brazil and Japan.

Former managers of one of the Group's French subsidiaries pleaded guilty and were fined and sentenced to prison sentences. Also in the competition investigation pertaining to fender operations, former managers have pleaded guilty. The managers concerned have been dismissed and no longer work for the Trelleborg Group.

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 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.

Costs for the approved action program will be expensed continuously. Costs incurred for the ongoing action program, combined with the accumulated and estimated costs of the investigations in progress, were charged against full-year operating profit in an amount of SEK 86 M. The previously communicated estimation that the total costs for these investigations and the approved program would amount to about SEK 100 M stands firm.

The investigations are expected to be completed during 2008.

Items affecting comparability totaled SEK 178 M during the quarter

Items affecting comparability for calculation of key operating ratios. Items affecting comparability totaling SEK 178 M before tax were excluded from the reporting of the Group's key operating ratios for the fourth quarter. These items affecting comparability comprise restructuring costs of SEK 151 M within the framework of the action program under way within Trelleborg Automotive and of SEK 5 M within Trelleborg Wheel Systems, as well as SEK 22 M for a new project within Engineered Systems.

Since autumn 2006, an action program has also been under way in the Automotive business area that involves a strategic and operational review aimed at improving profitability and the business area's strategic position. The total action program is expected to cost 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 towards the end of the 2008 fiscal year and in 2009.

During 2006 and 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, 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 151 M that affected operating profit in the fourth quarter comprised costs for the divestment of the operations in Coventry (see page 6) in an amount of SEK 83 M and ongoing costs within the framework of previously announced measures.

For the Trelleborg Wheel Systems business area, SEK 5 M pertains to ongoing costs for previously announced measures.

Within Trelleborg Engineered Systems' business unit for sealing profiles, a decision was taken during the fourth quarter to implement an action program designed to improve the unit's efficiency. The action program will result in costs of SEK 22 M, mainly attributable to a plant in Minworth, in the UK.

Events after period-end

Decision to close or relocate production at two Group plants

Changes in the production structure. In early 2008, a decision was taken to initiate negotiations concerning the closure or relocation of production at two of the Group's plants.

Trelleborg Sealing Solutions has decided to discontinue its operations in Derbyshire, in the UK, where manufacturing of large train gangways is conducted. The decision is in line with the business area's portfolio evaluation, which showed that the operation is not considered to offer attractive long-term growth and margin trends.

Trelleborg Engineered Systems has decided to consolidate and focus its production of special hose, and to discontinue certain non-profitable items from its range. This will entail that certain production of special hoses will be consolidated in the town of Trelleborg, Sweden, while certain parts are relocated to the business area's main plant for special hoses in Clermont-Ferrand, France.

The combined costs for the above changes in the production structure are estimated to be less than SEK 60 M, with most of this amount expected to be charged against the first quarter of 2008.

Judgment from Administrative Court of Appeal regarding tax dispute. In a judgment in 2004, the County Administrative Court in Skåne County prescribed for Trelleborg AB deductions for a tax loss carryforward of about SEK 600 M that arose in conjunction with the divestment of operations in 1999. Following an appeal by the Swedish National Tax Board, the Administrative Court of Appeal in Gothenburg has changed the judgment of the County Administrative Court, with the effect that no deductions will be permitted for the loss.

The value of the tax loss carryforward, which can be estimated at SEK 168 M, was not recorded earlier as an asset in the company's accounts. Accordingly, the Administrative Court of Appeal's judgment will have no impact on the company's income statement or balance sheet.

Trelleborg intends to appeal the Administrative Court of Appeal's judgment in the Swedish Supreme Administrative Court.

Motions to Annual General Meeting April 28, 2008

Proposed dividend. The Board and CEO propose that a cash dividend of SEK 6.50 (6.00) per share be paid to shareholders. The Group's dividend policy is that, in the long term, dividends shall comprise 30-50 percent of the net profit for the year. The proposed dividend, corresponding to a total of approximately SEK 587 M, entails about 71 percent of net profit for 2007 being paid in dividends and 46 percent on net profit for continuing operations excluding items affecting comparability.

Proposal for election of new Board of Directors. A Nominations Committee consisting of representatives of the major owners, corresponding to approximately 65 percent of the votes in Trelleborg and the Chairman of the Board and, has decided to propose to the Annual General Meeting that Sören Mellstig be elected new Member of the Board.

Sören Mellstig, born 1951, with a degree in business administration, previously held positions including President and Chief Executive Officer of Gambro and CFO and Executive Vice President of Incentive. He is currently Chairman of the Board of Aleris AB and Vatus Medical AB, and Member of the Board of Munters AB, Ferrosan A/S, PaloDex Oy, Dako A/S and Rindi Energi AB.

On the Board, he will replace Berthold Lindqvist (elected to Trelleborg's Board in 1996), who has declined re-election by the 2008 Annual General Meeting.

In addition, the re-election of all other Board Members is proposed.

The Nominations Committee also decided prior to the Annual General Meeting 2008 to propose the re-election of PricewaterhouseCoopers AB as the company's auditors for a four-year period.

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

Dividend of SEK 6.50 (6.00) per share proposed

Sören Mellstig proposed as new Member of the Board succeeding Berthold Lindqvist

Risk management at Trelleborg

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.

Operational risks. A business operation always runs the risk of lower revenues through the loss 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

The Group's outlook

Continued growth in main markets

Outlook for the first quarter of 2008. Continued favorable growth is expected within most of the Group's market segments. For such segments as Aerospace and Offshore Oil/Gas, demand is expected to remain highly robust. For automotiverelated operations, the North American market is expected to be weaker than in 2007, while the European market is expected to remain unchanged.

Outlook taken from the interim report of October 26, 2007: 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.

Trelleborg, February 15, 2008 The Board of Directors of Trelleborg AB (publ)

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

	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Excluding items affecting comparability
Net sales	3 011	2 692	11 745	9 310
Operating profit	308	250	1 168	805
Operating margin (ROS), %	10,1	9,2	9,9	8,6
Operating cash flow	482	382	1 071	815
Operating cash flow/Operating profit, %	156	153	92	101
Including items affecting comparability
Operating profit	286	237	1 079	769
ROS, %	9,4	8,7	9,1	8,2

Additional key ratios on pages 18 - 20

Favorable demand in the business area's main markets	The trend in most of the business area's main markets was healthy during the fourth quarter, and particularly favorable for products involving Infrastructure and the Offshore Oil/Gas industry. A certain slackening is noticeable for construction-related operations, primarily those pertaining to residential construction.
Increase in sales, organic growth of 6%	The sales increase in the fourth quarter derived from growth within all prioritized market segments and from the completed acquisitions. Organic growth amounted to 6 percent, which was inhibited somewhat by the continued phase-out of low-margin operations and by slightly lower project deliveries during the quarter.
New plant opened in Estonia	During the quarter, the business area opened its new plant in Kuressaare, Estonia, for the production of molded components and successfully started up expanded production there. In Sweden, relocation of production resources combined with continued production relocation to Kuressaare led to minor efficiency losses.
Investments in capacity increases proceeding as planned	The capacity expansion intended mainly for products for the Offshore oil/gas segment and implemented in 2007 was successful. Continued expansion is under way and is scheduled for completion during the first half of 2008. Although implementation of these necessary capacity expansions resulted in disturbances and thus in reduced efficiency, they will enable a long-term increase in sales.
Continued strong earnings generation, profit up 23%	The business area's operating profit, excluding items affecting comparability, rose 23 percent during the quarter compared with the year-earlier period, and its margin also improved as a result of favorable demand, a continued focusing of operations and the completed acquisitions.
The phase-out of low margin operations combined with changes in the production structure will enhance competitiveness	Within the business unit for sealing profiles, a decision was taken during the fourth quarter to implement an action program, comprising costs of SEK 22 M, mainly for the unit in Minworth in the UK, in order to significantly improve this unit's efficiency. In January 2008, negotiations commenced concerning the closure and production relocation of the business area's special hose plant in Trelleborg, Sweden, and of a smaller unit for the finishing of marine fenders in Scunthorpe, in the UK. The business area is continuing the phase-out of low-margin operations combined with changes in the production structure. Although these measures to offset rises in raw material prices are expected to have short-term adverse

effects on sales, they will result in more stable earnings capacity long term.

Trelleborg Automotive

		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Excluding items affecting comparability
Net sales	2 562	2 253	10 299	9 327
Operating profit	34	32	203	219
Operating margin (ROS), %	1,2	1,4	1,9	2,2
Operating cash flow	74	51	100	132
Operating cash flow/Operating profit, %	218	159	49	60
Including items affecting comparability
Operating profit	-117	-248	-179	-61
ROS, %	neg	neg	neg	neg

Additional key ratios on pages 18 - 20

Car production down in North America, up in Europe and Asia	During the fourth quarter, car production in North America declined by 1 percent. In Europe, production increased by 6 percent (Eastern Europe up 24 percent). Car production in Asia grew by 6 percent. (Source: JD Power/Trelleborg).
Organic growth of 13%, driven by AVS	The business area's sales continued to rise during the fourth quarter, with organic growth of 13 percent compared with the year-earlier period. The sales trend for the business area's anti-vibration operation was strong. The anti-vibration operation in North America continued to capture market shares and growth was also favorable in Asia. Fluid & Acoustic Solutions also increased its sales.
Global platforms generate growth	Sales remained healthy. Among others, an order was secured for the new Ford Transit, a global platform planned to be produced in Mexico, China and Turkey, with an annual volume of 560,000 vehicles. Deliveries are scheduled to commence during the second half of 2010.
Continued unsatisfactory performance in certain parts of the operations	Operating profit improved somewhat during the quarter, primarily as a result of earnings improvements in AVS operations in North America and Asia. Operations within Fluid & Acoustic did not improve at the anticipated rate, due to delays in realizing positive effects from the action program, caused by the strong growth in volume. Raw material costs increased slightly during the fourth quarter. Net capitalized development costs after amortization amounted to SEK 11 M (income: 2) during the quarter and SEK 12 M (income: 47) for the full year.
Strategic review continues. Divestment of unit in Coventry	The business area's strategic and operational review continued during the quarter with the divestment of the operation in Coventry, in the UK. The divestment resulted in a book capital loss for the quarter of SEK 83 M before tax, and is expected to generate a positive cash flow. The comprehensive action program has been delayed somewhat due to the business area's strong volume growth. Another subproject, which is expected to be announced during the first half of 2008, remains within the framework of the original action program. In addition, a further review of the operations of Fluid & Acoustic Solutions is under way. Although the business area's restructuring measures are having a gradual impact, but an accelerating price trend for steel and oil-related raw materials during the first half of 2008 is expected to delay the improvements in margins.
New organization from year-end	A new global organization has been implemented, based on five clearly defined business units and establishing certain global functions, such as purchasing. The aim is to generate volume growth and synergism between units and to create conditions for an increase in strategic and structural improvements.

		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Net sales	1 440	1 287	5 844	5 389
Operating profit	194	182	839	726
Operating margin (ROS), %	13,5	14,1	14,4	13,5
Operating cash flow	246	259	751	794
Operating cash flow/Operating profit, %	127	142	90	109
Additional key ratios on pages 18 - 20
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 fourth quarter. The trend

The market conditions for Trelleborg Sealing Solutions within the prioritized industrial segment and the aerospace industry were good during the fourth quarter. The trend remained favorable in the Asian, European and North American markets. In Europe, this was driven primarily by Germany and Scandinavia.

Gradual prioritization of segments resulted in increased sales, organic growth of 10 % The business area increased its sales in all segments. All geographical markets enjoyed favorable organic growth, with strong growth in Central Europe and Asia. The business area's total organic growth amounted to 10 percent for the quarter. The business area's focus on growth initiatives is now beginning to bear fruit, with increased growth in North America and Asia, and with positive signals in areas such as chemical processing and semiconductor industries. The business area is now evaluating further growth opportunities through its own initiatives and acquisitions. During the quarter, the US company Sealing Solutions Inc. was acquired, with about 40 employees and annual sales of approximately SEK 100 M. Sealing Solutions Inc. is a leading supplier in the eastern US of sealing products from Trelleborg and others, mainly to the aerospace industry and industrial OEM companies. The company has positioned itself through specialist expertise that permits integrated deliveries in the customers' production processes. In combination with acquisitions made earlier during the year, Trelleborg's presence in North America is further strengthened. The integration of these earlier acquisitions was successfully implemented. Acquisitions strengthen presence in North America

Operating profit up by 7 % During the fourth quarter, operating profit increased compared with the year-earlier period. Factors contributing to the profit increase were increased sales strengthened by the improved product mix and enhanced capacity utilization. However, the discontinuation of products from other suppliers in the acquired companies, combined with other integration expenses, inhibited the margin somewhat.

Decision on consolidation of plant structure In January 2008, a decision was made regarding the closure of the business area's plant in Eugene, in the US, and the transfer of production to the business area's plant in Streamwood, in the US. The decision is a consequence of the acquisition of the sealing company Hydro-Components and is aimed at realizing synergies. Negotiations have been initiated and the closure/production transfer is scheduled for completion in June 2008.

Trelleborg Sealing Solutions has also decided to discontinue its operation in Derbyshire, in the UK, and the manufacture of large train gangways there. Negotiations have commenced.

Flexible solutions within the business area's production structure and opportunities for increased sourcing continue to be assessed and a number of possible changes have been identified and evaluated.

		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Excluding items affecting comparability
Net sales	825	753	3 248	3 145
Operating profit	60	61	288	243
Operating margin (ROS), %	7,4	8,1	8,9	7,7
Operating cash flow	70	147	146	153
Operating cash flow/Operating profit, %	117	241	51	63
Including items affecting comparability
Operating profit	55	40	261	222
ROS, %	6,8	5,4	8,0	7,1

Additional key ratios on pages 18 - 20

The market for industrial tires in Western Europe and North America demonstrated continued growth, but with a certain slowdown for OEM customers in North America. The total market for agricultural tires in Europe declined somewhat during the quarter but increases were noted in the segment for larger tire dimensions, an area in which Trelleborg is well-positioned and continued strong demand for large tractors favors the business area. Favorable demand in the business area's prioritized segments Efficiency enhancement of the production platform proceeding as planned Strong demand for agricultural tires resulted in good organic growth of 9 % The business area's 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 invested in a further enhanced production structure at the plant in Tivoli, in Italy, during the quarter. Capacity utilization in the production of agricultural tires remains high. The business area's organic growth for the fourth quarter amounted to 9 percent. 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 for industrial tires in Hartville, in the US, is also proceeding as planned. As a result of investments, industrial tire capacity in Sri Lanka increased successively during the year, but was delayed somewhat due to generally higher volumes and proactive measures aimed at reducing the future risk of flooding. During the quarter, the business area completed the acquisition of the Australian company, Solid Service Group, with about 40 employees and annual sales of about SEK 65 M. The acquisition creates new distribution opportunities for Trelleborg's own tire products and favorable conditions for continued growth in the region. In the fourth quarter, operating profit and the operating margin declined somewhat compared with the year-earlier period, when nonrecurring revenue had a positive effect on earnings. However, the underlying generation of earnings improved mainly as a result of continued positive effects from the business area's focusing of the product portfolio. Acquisition offers growth opportunities in Australia Improved underlying earnings generation

Financial accounts

Income Statements
Group		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations
Net sales	7 762	6 905	30 810	26 875
Cost of goods sold	-5 861	-5 245	-23 151	-20 186
Gross profit	1 901	1 660	7 659	6 689
Selling expenses	-584	-543	-2 244	-2 062
Administrative expenses	-782	-641	-3 002	-2 625
Research and development costs	-149	-135	-550	-496
Other operating income/expense	-44	-184	-159	-45
Profit from part. in assoc. companies	4	5	12	22
Operating profit	346	162	1 716	1 483
Financial income and expenses	-122	-90	-439	-313
Profit before tax	224	72	1 277	1 170
Tax	-80	-79	-430	-402
Profit for the period	144	-7	847	768
Discontinued operations
Net sales	37	40	161	409
Operating profit	-4	-3	-9	24
Profit before tax	-4	-2	-9	23
Profit for the period	-4	-2	-9	-2
Total Net sales	7 799	6 945	30 971	27 284
Total operating profit	342	159	1 707	1 507
Total profit before tax	220	70	1 268	1 193
Total profit for the period	140	-9	838	766
- attributable to minority interest	6	4	17	15
- attributable to equity holders of the parent	134	-13	821	751

Earnings per share	Oct - Dec		Jan - Dec
SEK	2007	2006	2007	2006
Continuing operations
Earnings	1,55	-0,15	9,20	8,30
Discontinued operations
Earnings	-0,05	0,00	-0,10	0,00
Total
Earnings	1,50	-0,15	9,10	8,30
Number of shares
Excluding own holdings
End of period	90 357 261	90 357 261	90 357 261	90 357 261
Average number	90 357 261	90 357 261	90 357 261	90 357 261
Treasury shares
End of period	-	-	-	-
Average number	-	-	-	3 892 915

TRELLEBORG AB YEAR-END REPORT JANUARY - DECEMBER 2007

Balance Sheets
Group	Dec 31	Dec 31
SEK M	2007	2006
Property, plant and equipment	6 293	6 008
Intangible assets	10 098	9 535
Financial assets	967	1 025
Total non-current assets	17 358	16 568
Inventories	4 012	3 604
Current operating receivables	7 339	6 681
Current interest-bearing receivables	95	88
Cash and cash equivalents	530	616
Total current assets	11 976	10 989
Total assets	29 334	27 557
Shareholders' equity, excluding minority share	9 932	9 580
Minority share	120	107
Total equity	10 052	9 687
Non-current interest-bearing liabilities	7 276	6 859
Other non-current liabilities	1 598	1 521
Total non-current liabilities	8 874	8 380
Interest-bearing current liabilities	3 446	3 225
Other current liabilities	6 962	6 265
Total current liabilities	10 408	9 490
Total equity and liabilities	29 334	27 557

Specification of changes in equity	Dec 31	Dec 31
SEK M	2007	2006
Attributable to equity holders of the parent
Opening balance, January 1	9 580	10 041
Cash flow hedges, net after tax	-16	10
Translation difference	172	-905
Exchange-rate difference on hedging instruments 1)	-83	180
Profit for the period	821	751
Dividend	-542	-497
Closing balance	9 932	9 580
Attributable to minority interest
Opening balance, January 1	107	72
Acquisitions	4	26
Translation difference	-5	-5
Profit for the period	17	15
Dividend	-3	-1
Closing balance	120	107
Sum Closing balance, equity	10 052	9 687

1) Net after tax

Cash flow statements

Group		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Operating activities
Operating profit	346	163	1 716	1 483
Adjustments for items not included in cash flow:
Depreciation, intangible assets	43	31	149	112
Depreciation, property, plant and equipment	202	207	836	795
Impairment losses, intangible assets	38	157	69	157
Impairment losses, property, plant and equipment	26	71	18	81
Provision for restructuring costs	133	76	484	99
Undistributed result from part. in assoc. companies	17	-6	10	12
	805	699	3 282	2 739
Interest received and other financial items	53	2	61	67
Interest paid and other financial items	-166	-90	-487	-312
Taxes paid	-190	-163	-446	-320
Cash flow from operating activities before changes in
working capital	502	448	2 410	2 174
Cash flow from changes in working capital:
Change in inventories	4	-52	-324	-269
Change in operating receivables	357	129	-359	-528
Change in operating liabilities	92	327	343	641
Utilization of restructuring provisions	-144	-20	-320	-83
Cash flow from operating activities	811	832	1 750	1 935
Investing activities
Acquisitions	-295	-1 445	-616	-3 095
Restructuring measures in acquired entities	-2	-8	-5	-41
Disposals 1)	-	-	127	188
Capital expenditure in intangible assets	-43	-27	-121	-132
Capital expenditure, property, plant and equipment	-469	-365	-1 212	-975
Sale of non-current assets	63	37	107	118
Cash flow from investing activities	-746	-1 808	-1 720	-3 937
Financing activities
Change in interest-bearing investments	31	6	19	-20
Change in interest-bearing liabilities	-88	958	400	2 520
Dividend paid to shareholders	-	-	-542	-497
Dividend paid to minority	0	-1	-3	-1
Cash flow from the financing activities	-57	963	-126	2 002
Cash flow for the period	8	-13	-96	0
Cash and cash equivalents:
At beginning of the period	515	649	616	663
Exchange rate differences	7	-20	10	-47
Cash and cash equivalents at end of period	530	616	530	616

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

TRELLEBORG AB YEAR-END REPORT JANUARY - DECEMBER 2007

Group review, continuing operations

	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations excluding items affecting comparability
Net sales	7 762	6 905	30 810	26 875
EB ITDA	793	713	3 276	2 726
Operating profit	524	477	2 274	1 820
Profit for the period	278	280	1 282	1 072

Net sales		Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations
Trelleborg Engineered Systems	3 011	2 692	11 745	9 310
Trelleborg Automotive	2 562	2 253	10 299	9 327
Trelleborg Sealing Solutions	1 440	1 287	5 844	5 389
Trelleborg Wheel Systems	825	753	3 248	3 145
Eliminations	-76	-80	-326	-296
Total	7 762	6 905	30 810	26 875

EBITDA 1)	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	388	314	1 464	1 041
Trelleborg Automotive	154	138	634	616
Trelleborg Sealing Solutions	239	224	1 019	897
Trelleborg Wheel Systems	82	84	374	334
Other companies	2	-2	-6	-8
Group items	-72	-45	-209	-154
Total excluding items affecting comparability	793	713	3 276	2 726
Items affecting comparability
Trelleborg Engineered Systems	-38	-13	-86	-31
Trelleborg Automotive	-93	-51	-314	-51
Trelleborg Wheel Systems	-5	-17	-27	-17
Sale of property	-	-	26	-
Legal non-recurring items	-	-	-86	-
Total including items affecting comparability	657	632	2 789	2 627

1) Operating profit before depreciations and impairment losses.

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

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

Operating profit	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	308	250	1 168	805
Trelleborg Automotive	34	32	203	219
Trelleborg Sealing Solutions	194	182	839	726
Trelleborg Wheel Systems	60	61	288	243
Other companies	2	-4	-8	-15
Group items	-74	-44	-216	-158
Total excluding items affecting comparability	524	477	2 274	1 820
Items affecting comparability
Trelleborg Engineered Systems	-22	-13	-89	-36
Trelleborg Automotive	-151	-280	-382	-280
Trelleborg Wheel Systems	-5	-21	-27	-21
Sale of property	-	-	26	-
Legal non-recurring items	-	-	-86	-
Total including items affecting comparability	346	163	1 716	1 483

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

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

Capital employed 1)	Dec 31	Dec 31
SEK M	2007	2006
Continuing operations
Trelleborg Engineered Systems	6 201	5 920
Trelleborg Automotive	5 215	4 968
Trelleborg Sealing Solutions	6 975	6 374
Trelleborg Wheel Systems	1 679	1 418
Other companies	20	129
Group items	19	19
Provisions for restructuring measures	-254	-95
Total	19 855	18 733

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

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

TRELLEBORG AB YEAR-END REPORT JANUARY - DECEMBER 2007

Return on capital employed, (ROCE) 1)	Jan - Dec
%	2007	2006
Continuing operations excluding items affecting comparability
Trelleborg Engineered Systems	18,6	16,7
Trelleborg Automotive	3,9	4,1
Trelleborg Sealing Solutions	12,5	10,9
Trelleborg Wheel Systems	18,5	16,3
Total excluding items affecting comparability	11,5	9,9
Including items affecting comparability
Trelleborg Engineered Systems	17,3	16,1
Trelleborg Automotive	neg	neg
Trelleborg Wheel Systems	16,9	15,0
Total including items affecting comparability	8,8	8,1

1) Operating profit in relation to average capital employed.

Cash flow report				Capital		Sold non		Change in		Total cash flow
	EBITDA 1)		expenditure		current assets		working capital		Jan - Dec
SEK M	2007	2006	2007	2006	2007	2006	2007	2006	2007	2006
Trelleborg Engineered Systems	1 503	1 066	-432	-271	17	14	-17	6	1 071	815
Trelleborg Automotive	688	674	-441	-490	25	12	-172	-64	100	132
Trelleborg Sealing Solutions	1 041	918	-239	-198	28	72	-79	2	751	794
Trelleborg Wheel Systems	385	346	-171	-139	2	-	-70	-54	146	153
Other companies	-7	-8	-	-	33	1	-28	-7	-2	-14
Group items	-325	-257	-50	-9	2	19	25	-39	-348	-286
Operating cash flow	3 285	2 739	-1 333	-1 107	107	118	-341	-156	1 718	1 594
Utilization of restructuring provisions									-325	-124
Dividend paid to minority									-3	-
Financial items									-426	-245
Paid tax									-446	-320
Free cash flow									518	905
Acquisitions									-616	-3 095
Disposals 2)									127	188
Dividend paid to shareholders									-542	-497
Sum net cash flow									-513	-2 499

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

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

Acquisitions, January - December
SEK M	2007	2006
Purchase price 1)	598	3 060
Acquisition expenses	18	35
Net realizable value of acquired assets	136	1 113
Goodwill	480	1 982
Acquired assets and liabilities:
Property, plant and equipment	66	723
Intangible assets	2	54
Deferred tax	20	38
Associated companies	-4	-1
Other shares	-	7
Operating assets	107	1 108
Minority share	-	75
Operating liabilities	-55	-891
Total	136	1 113
Profit for the period	12	145
Profit for the period in acquired entities January - December	13	185

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

Parent Company

Parent Company in figures. Profit before tax in Trelleborg AB, the Parent Company of the Trelleborg Group, amounted to SEK 2,207 M (22) during the period January – December. The improvement compared with the preceding year was largely attributable to approved higher internal dividends from subsidiaries. No sales were made. Investments amounted to SEK 31 M (4). The number of employees at the end of the year was 83 (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 6-9 of this report, where overall significant events for the January – December 2007 period are reported.

Income Statements

Parent company	Oct - Dec		Jan - Dec
SEK M	2007	2006	2007	2006
Administrative expenses	-125	-78	-439	-312
Other operating income	37	27	254	238
Other operating expenses	-	-	-	-1
Operating profit	-88	-51	-185	-75
Financial income and expenses	2 856	-200	2 392	97
Profit before tax	2 768	-251	2 207	22
Tax	93	98	264	193
Profit for the period	2 861	-153	2 471	215

Balance Sheets
Parent company	Dec 31	Dec 31
SEK M	2007	2006
Property, plant and equipment	32	7
Intangible assets	10	10
Financial assets	32 520	28 420
Total non-current assets	32 562	28 437
Current operating receivables	76	80
Current interest-bearing receivables	1 877	1 906
Cash and cash equivalents	0	0
Total current assets	1 953	1 986
Total assets	34 515	30 423
Shareholders' equity, excluding minority share	10 209	7 601
Total equity	10 209	7 601
Non-current interest-bearing liabilities	137	121
Other non-current liabilities	6	4
Total non-current liabilities	143	125
Interest-bearing current liabilities	24 073	22 623
Other current liabilities	90	74
Total current liabilities	24 163	22 697
Total equity and liabilities	34 515	30 423

INVITATION to telephone conference on February 15, at 9.30 a.m. CET

A telephone conference will be held on February 15 at 9:30 a.m. CET. Call +46 (0)8 505 202 70 or +44 (0)208 817 9301 and state the code 452 7742 or the password "Trelleborg." Presentation materials will be available at www.trelleborg.com under "Investors" and then under "Presentations" from about 30 minutes prior to the commencement of the conference.

Calendar 2008

Interim report January-March	April 28, 2008
Annual General Meeting	April 28, 2008
Interim report January-June	July 24, 2008

CONTACT

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

Conny Torstensson, VP, Investor Relations

Phone: +46 (0)410-670 70, Mobile: +46 (0)734-087 070 conny.torstensson@trelleborg.com

Viktoria Bergman, SVP, 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.

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 Friday, February 15, 2008.