Trelleborg — Interim / Quarterly Report 2009

Oct 29, 2009

Third quarter of 2009

President and CEO Peter Nilsson

"Demand in many segments remained weak during the quarter. Despite this, the Group's operating margin improved, which demonstrates that the measures we have taken to adapt capacity have yielded effects.

Effective management of working capital and a sequential improvement in earnings meant that we continued to generate a strong cash flow.

As we look ahead, there remains a sense of uncertainty regarding the demand trend. With a focus on our customers, we will continue to take measures to build an efficient and flexible structure for the long term."

• Net sales in the third quarter of 2009 totaled SEK 6,559 M (7,527).
• Operating profit increased to SEK 371 M (263). Items affecting comparability amounted to an expense of SEK 39 M (expense: 187).
• Operating cash flow rose to SEK 856 M (634), primarily as a result of a lower level of investment and a reduction in tied-up working capital. Free cash flow increased to SEK 496 M (370).
• Net debt to equity improved further, to 74 percent (114).

	Jul - Sep		Jan - Sep
SEK M	2009	2008	2009	2008
Net sales	6,559	7,527	20,303	23,920
Operating profit	371	263	576	1,174
Profit for the period	216	102	327	584
Earnings per share, SEK 1)	0.80	0.50	1.40	2.90
Operating profit, excl. items affecting comparability	410	450	735	1,806
Earnings per share, SEK, excl. items affecting comparability 1)	0.90	1.15	1.90	5.10

1) Share of net profit for the period attributable to equity holders of the Parent divided by the average number of shares. Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares.

Market outlook for the fourth quarter of 2009

Market outlook for the fourth quarter of 2009. Overall, demand is expected to remain in line with the third quarter of 2009.

Key ratios		Jul - Sep	Jan - Sep		Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Net sales	6,559	7,527	20,303	23,920	27,646	31,263
Operating profit	371	263	576	1,174	-224	374
Profit before tax	288	133	241	787	-712	-166
Profit for the period	216	102	327	584	-515	-258
- attributable to equity holders of the parent	213	102	322	578	-523	-267
- attributable to minority interest	3	0	5	6	8	9
Earnings per share, SEK 1)	0.80	0.50	1.40	2.90	-2.35	-1.35
Operating key ratios		Jul - Sep		Jan - Sep	Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Operating profit	410	450	735	1,806	727	1,798
Earnings per share, SEK 1)	0.90	1.15	1.90	5.10	1.40	4.45
EBITDA, %	10.4	9.5	7.7	10.7	6.7	9.1
Operating margin (ROS), %	6.2	5.9	3.6	7.5	2.6	5.7

1) Share of net profit for the period attributable to equity holders of the Parent divided by the average number of shares. Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33. This calculation method has been applied throughout this report in all key figures that include the number of shares.

The Group's key figures

July – September 2009

Net sales. The Trelleborg Group's net sales for the third quarter of 2009 amounted to SEK 6,559 M (7,527), down 13 percent. Organic sales declined 19 percent. Exchange-rate effects were +6 percent and effects from structural changes 0 percent.

Overall for the Group, demand in the third quarter of 2009 was in line with the second quarter of 2009. For the agricultural industry and certain capital goods, for example, demand was lower than in the second quarter of 2009, while demand in the light vehicles industry was slightly higher, driven primarily by government incentive programs.

The Group continued to improve its market positions and is working to establish a better geographic balance through continued investments in South America, Asia and Central and Eastern Europe. During the quarter the Group's fifth wholly owned manufacturing unit in China was inaugurated.

Change in net sales	Jul - Sep	Jul - Sep
%	2009	2008
Organic sales	-19	0
Acquisitions/divestments	0	+2
Currency impact	+6	-1
Total	-13	+1

Continued focus on growth markets

Organic sales declined 19 percent

Operating profit increased to SEK 371 M (263)

Earnings. Operating profit for the quarter amounted to SEK 371 M (263). Items affecting comparability were an expense of SEK 39 M (expense: 187), refer to page 4. Despite significantly lower volumes operating margins were effectively maintained, compared with the year-earlier period, as a result of reduced cost levels. Many raw materials prices were lower than in the preceding year, which had a positive effect on earnings for the quarter. The prices of certain raw materials began to increase again toward the end of the period, which is considered to be the result of an anticipated rise in demand.

For several years, the Group has implemented action programs to establish a structure with improved long-term efficiency. Since the second quarter of 2008, extensive measures have also been taken to adjust capacity and variable costs to the prevailing demand level.

Exchange-rate fluctuations arising in the translation of the earnings of foreign Group companies had a positive impact of SEK 29 M compared with the same period in 2008.

The Group posted a net financial expense of SEK 83 M (expense: 130), corresponding to an average interest rate of 3.5 percent (4.5).

Profit before tax amounted to SEK 288 M (133). Net profit totaled SEK 216 M (102). The tax rate for the quarter continued to be impacted by a positive country mix. Earnings per share totaled SEK 0.80 (0.50).

Free cash flow increased to SEK 496 M (370)

Cash flow. Operating cash flow improved during the period to SEK 856 M (634), mainly due to a lower level of investment and reduced tied-up working capital.

SEK M	Jul - Sep			Jan - Sep		Full year
	2009	2008	2009	2008	Sep 2009	2008
Operating cash flow	856	634	2,301	992	2,903	1,594
Utilization of restructuring provisions	-218	-102	-522	-274	-695	-447
Dividend paid to minority	-	-	-2	-3	-2	-3
Financial items	-55	-75	-480	-279	-529	-328
Paid tax	-87	-87	-162	-301	-263	-402
Free cash flow	496	370	1,135	135	1,414	414

Debt/equity ratio improved to 74 percent

Net debt. Net debt declined SEK 1,213 M during the period to SEK 8,833 M as a result of strong free cash flow combined with effects of exchange-rate fluctuations.

The debt/equity ratio improved to 74 percent, compared with 79 percent on June 30, 2009, primarily as a result of strong cash flow. Compared with the same date in 2008, the debt/equity ratio improved from 114 percent due to strong cash flow and a successfully concluded rights issue of SEK 2,169 M.

Change in net debt		Jul - Sep		Jan - Sep
SEK M	2009	2008	2009	2008	2008
Net debt, opening balance	-10,046	-11,409	-12,706	-10,093	-10,093
Net cash flow for the period	495	313	3,155	-1,190	-977
Borrowing costs	-2	0	0	0	-
Exchange rate differences	720	-610	718	-423	-1,636
Net debt, closing balance	-8,833	-11,706	-8,833	-11,706	-12,706
Debt/equity ratio, %			74	114	124

Unutilized credit facilities of SEK 10.0 billion

Financing. Trelleborg has long-term basic financing, via a syndicated loan, that extends into 2012. Long-term credit facilities and other long-term loans amounted to approximately SEK 14.8 billion at the end of the third quarter of 2009. Short-term credit facilities and other short-term loans amounted to SEK 4.6 billion. The unutilized portion of the total credit facilities amounted to SEK 10.0 billion, of which SEK 7.6 billion were related to the long-term credit facilities. The equity/assets ratio was 40 percent (32).

January – September 2009

Net sales. The Trelleborg Group's net sales during the first nine months of 2009 amounted to SEK 20,303 M (23,920), down 15 percent compared with the year-earlier period. Organic sales declined 25 percent, exchange-rate effects were +9 percent and effects from structural changes +1 percent.

Earnings. Operating profit during the first nine months of the year totaled SEK 576 M (1,174). Items affecting comparability amounted to an expense of SEK 159 M (expense: 632), see below. Profit before tax totaled SEK 241 M (787). Net profit amounted to SEK 327 M (584). The Group's tax expense was affected positively by the country mix plus capitalization of loss carryforwards in Germany and the UK totaling SEK 123 M and the successful resolution of a tax dispute in Sweden totaling SEK 18 M. Earnings per share amounted to SEK 1.40 (2.90).

Operating cash flow for the first nine months increased to SEK 2,301 M (992)

Cash flow. Operating cash flow for the first nine months increased to SEK 2,301 M (992). The lower earnings generated were effectively offset by the release of working capital and a lower investment level.

Capital employed and shareholders' equity. Capital employed amounted to SEK 19,952 M at the end of the period, compared with SEK 21,563 M at the end of the corresponding period in 2008. The decrease is mainly attributable to a reduction in tied-up working capital. The return on capital employed during the most recent 12-month period was negative (full-year 2008: 1.8 percent).

Shareholders' equity at the end of the period totaled SEK 11,916 M, excluding minority shares.

	Group		Excl. items affecting comparability
	Oct 2008 -	Full year	Oct 2008 -	Full year
%	Sep 2009	2008	Sep 2009	2008
Return on capital employed	neg	1.8	3.2	8.4
Return on shareholders' equity	neg	neg	2.8	8.8

Items affecting comparability

Items affecting comparability during the quarter: expense of SEK 39 M before tax and expense of SEK 29 M after tax

Items affecting comparability for the calculation of key figures. Items affecting comparability during the third quarter of 2009 totaling an expense of SEK 39 M (expense: 187) before tax were excluded from the calculation of the Group's operating key figures. Refer to the table on page 5. Items affecting comparability comprise restructuring costs for previously announced and ongoing programs in all four of the Group's business areas. The remaining costs for the programs communicated prior to the end of the third quarter 2009 of about SEK 80 M will mainly be charged against the fourth quarter of 2009.

After the close of the period, Trelleborg Engineered Systems announced a proposal regarding the streamlining of a number of its production units in Europe, refer to page 6.

Items affecting comparability
of operating profit 1)	Jul - Sep Jan - Sep		Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Trelleborg Engineered Systems	-11	-12	-17	-34	-62	-79
Trelleborg Automotive	-10	-163	-33	-549	-352	-868
Trelleborg Sealing Solutions	-10	-	-97	-25	-104	-32
Trelleborg Wheel Systems	-8	-9	-12	-10	-17	-15
Legal non-recurring items	-	-3	-	-14	-416	-430
Total items affecting comparability	-39	-187	-159	-632	-951	-1,424

1) Main part reported as other operating expenses

The carrying amount of the provisions recognized for restructuring costs and legal costs that are related to earlier communicated competition investigations amounted to SEK 463 M at the end of the third quarter. These provisions are expected to affect cash flow primarily in 2009 and 2010.

The Group's operating key figures

July – September 2009

Earnings. Operating profit, excluding items affecting comparability totaled SEK 410 M (450).

The operating margin was 6.2 percent (5.9). Operating profit before depreciation (EBITDA) was SEK 685 M (719). The EBITDA margin was 10.4 percent (9.5).

Consolidated profit before tax amounted to SEK 327 M (320) and net profit amounted to SEK 245 M (231). Earnings per share totaled SEK 0.90 (1.15).

January – September 2009

Earnings. Operating profit, excluding items affecting comparability, amounted to SEK 735 M (1,806).

The operating margin was 3.6 percent (7.5). Operating profit before depreciation (EBITDA) totaled SEK 1,581 M (2,579). The EBITDA margin was 7.7 percent (10.7).

Consolidated profit before tax amounted to SEK 400 M (1,419) and net profit to SEK 447 M (1,016). Earnings per share totaled SEK 1.90 (5.10).

Other

Tax dispute. On September 16, 2009, the Supreme Administrative Court in Sweden decided not to grant review dispensation in Trelleborg AB's appeal of the 2004 ruling of the Administrative Court of Appeal.

The value of the loss from a taxation point of view was not recognized as an asset in the company's accounts in the past. Accordingly, the decision has no impact on the company's earnings or balance sheet.

Operating profit was SEK 410 M (450)

EBITDA margin amounted to 10.4 percent (9.5)

Decision by the Supreme Administrative Court regarding tax dispute ruling

Events after the close of the period

Nominations Committee for the 2010 Annual General Meeting

Nominations Committee. At Trelleborg AB's Annual General Meeting on April 23, 2009, the Chairman of the Board was assigned the task of asking five representatives of the company's largest shareholders to form a Nominations Committee that will prepare proposals regarding Board members to be presented to the 2010 Annual General Meeting for resolution.

The following persons were asked to participate in the Nominations Committee and agreed: Rolf Kjellman, Henry och Gerda Dunker Foundation, Henrik Didner, Didner & Gerge Funds, Ramsay Brufer, Alecta, Lars Öhrstedt, AFA Insurance and KG Lindvall, Swedbank Robur funds.

The Annual General Meeting will be held in Trelleborg on April 20, 2010 at 5:00 p.m. Shareholders wishing to submit proposals regarding candidates for the Board of Trelleborg may address these by e-mail to valberedningen@trelleborg.com or directly to the Chairman of the Board Anders Narvinger or any of the above-mentioned members of the Nominations Committee.

Trelleborg Engineered Systems has announced a proposal regarding streamlining of production units

Streamlining of production units. Trelleborg Engineered Systems announced a proposal regarding the streamlining of a number of its production units in Europe. This streamlining pertains to Sweden, the UK and Estonia, as well as France and Italy. The costs for the proposed measures are estimated to amount to approximately SEK 275 M, with the majority of the costs being charged to the fourth quarter of 2009 and the remainder to the first six months of 2010. The costs will be recognized as items affecting comparability.

The proposed measures are expected to have a cash-flow effect of about SEK 225 M, which will primarily occur in 2010. The payback period for this amount is estimated at about two years.

Risk management

Risks/risk management within Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in various systems and processes. Since 2008, Trelleborg has an Enterprise Risk Management process in place with the overall objective of ensuring that risks are managed systematically, that the right priorities are made and that risks are managed as efficiently as possible.

The principal risks and uncertainties currently faced by the Group pertain to the impact of the economic situation on demand, existing financing, access to future financing, exposure to foreign-exchange fluctuations, changes in the value of fixed assets and legal risks.

For further information about the Group's risks, risk exposure and risk management, refer to Trelleborg's Annual Report and www.trelleborg.com.

The Group's market outlook

Market outlook for the fourth quarter of 2009. Overall, demand is expected to remain in line with the third quarter of 2009.

_____________________________________________________________

Outlook from the interim report published on July 24, 2009: Market outlook for the third quarter of 2009. Overall, demand is expected to remain in line with the second quarter of 2009.

Trelleborg, October 29, 2009 The Board of Directors of Trelleborg AB (publ)

This report was prepared in accordance with IAS 34 Interim Financial Reporting. A large number of amendments to existing standards, new interpretations and one new standard (IFRS 8) came into effect on January 1, 2009. Trelleborg considers the following standards and interpretations, which took effect on January 1, 2009, to be relevant to the presentation of its financial statements and the accounting principles:

• IFRS 8, Operating segments. This standard requires that segment information be presented on the basis of a management approach. Trelleborg's segment information is already presented on the same basis as is used for internal reporting purposes by the highest executive decision-maker (the President). Accordingly, there is no change in Trelleborg AB's segment division compared with the segments previously presented in accordance with IAS 14.
• IAS 1, Presentation of Financial Statements. The amendment to this standard involves a change to the presentation of financial statements. In accordance with IAS 1, Trelleborg has opted to present the Group's total earnings divided into two statements: a separate income statement and a statement of comprehensive income. Furthermore, the consolidated statement of changes in shareholders' equity only includes transactions with the Group's owners.

In all other respects, Trelleborg continues to apply the same accounting principles and valuation methods as those described in the most recent Annual Report.

This report has not been subject to special review by the company's auditors.

	Jul - Sep		Jan - Sep		Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Net sales	2,740	2,957	8,470	8,984	11,714	12,228
Operating profit	236	260	540	891	732	1,083
Operating margin (ROS), %	8.5	8.6	6.3	9.7	6.1	8.6
Operating cash flow	476	292	1,263	472	1,586	795
Operating cash flow/operating profit, %	202	112	234	53	217	73
Including items affecting comparability
Operating profit	225	248	523	857	670	1,004
ROS, %	8.2	8.2	6.1	9.3	5.6	8.0

Trelleborg Engineered Systems

Additional key ratios on pages 15 - 17

Market trend. Demand in the industrial sector was on a par with the second quarter of 2009. Demand improved somewhat for industrial supply products compared with the second quarter of 2009, while demand for capital goods for industry displayed a weak decline. For project-related operations, demand in the area of infrastructure also remained in line with the second quarter of 2009, while the volume of awards in the area of offshore oil/gas was weaker. Nonetheless, the overall activity level in offshore oil/gas remained high.

Net sales. Net sales during the quarter declined 7 percent compared with the year-earlier period. Organic sales fell 14 percent, exchange-rate effects were +7 percent and effects of structural changes were 0 percent. In the infrastructure and offshore oil/gas segments, sales increased compared with the corresponding period in 2008.

The business area continued on a general basis to strengthen its market positions during the quarter.

Operating profit and cash flow. Operating profit was lower than the corresponding period in the preceding year, while the operating margin was on a par with the year-earlier period. Ongoing projects to adapt capacity continue according to plan. After the end of the report period, the business area announced a proposal regarding the streamlining of certain production units in Europe (see page 6).

Cash flow improved during the quarter compared with the preceding year, primarily as a result of the release of working capital.

Other. During the quarter, the Trelleborg Group inaugurated its fifth wholly owned production site in China, which will further strengthen the company's presence in the Chinese market. The new facility is located in Qingdao and is Trelleborg Engineered Systems' third production site in China.

		Jan - Sep		Oct 2008 -	Full year
2009	2008	2009	2008	Sep 2009	2008
2,129	2,264	6,077	7,630	7,953	9,506
63	-83	-118	-30	-467	-379
2.9	neg	neg	neg	neg	neg
96	70	223	-51	333	59
152	neg	neg	neg	neg	neg
53	-246	-151	-579	-819	-1,247
2.4	neg	neg	neg	neg	neg
		Jul - Sep

Trelleborg Automotive

Additional key ratios on pages 15 - 17

Market trend. During the quarter, global car production increased 10 percent compared with the second quarter of 2009. Car production in North America was higher than in the second quarter of 2009, while it was slightly lower in Europe. Government incentive programs had a positive impact on production. Car production in Asia rose compared with the second quarter of 2009, a trend driven by strong expansion in China and India.

Net sales. Net sales during the quarter declined 6 percent compared with the year-earlier period. Organic sales fell 12 percent, exchange-rate effects were +6 percent and effects from structural changes were 0 percent.

Operating profit and cash flow. Operating profit improved compared with the year-earlier period, much thanks to structural measures and various capacity and cost adaptations implemented over the past number of years.

The programs announced within the business area are in their final phase. The main program remaining is the execution of the relocation of the production of certain products from Nantes, France, to Cerkezköy, Turkey, within the Fluid Solutions business unit. The production in Nantes of these products is planned to be discontinued in the fourth quarter of 2009.

Improved earnings combined with a continued low level of investment contributed to a continued strong cash flow.

		Jul - Sep		Jan - Sep		Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Net sales	1,104	1,480	3,509	4,673	4,870	6,034
Operating profit	94	221	157	752	295	890
Operating margin (ROS), %	8.6	14.9	4.5	16.1	6.1	14.8
Operating cash flow	240	290	525	647	800	922
Operating cash flow/operating profit, %	255	131	334	86	271	104
Including items affecting comparability
Operating profit	84	221	60	727	191	858
ROS, %	7.7	14.9	1.7	15.6	3.9	14.2

Trelleborg Sealing Solutions

Additional key ratios on pages 15 - 17

Market trend. Within the general industrial sector and in the aerospace industry, demand was in line with the second quarter of 2009. In the light vehicle industry, demand was somewhat better compared with the second quarter of 2009, primarily driven by government incentive programs.

Net sales. Net sales during the third quarter of 2009 declined 25 percent compared with the year-earlier period. Organic sales fell by 31 percent, exchange-rate effects were +7 percent and effects of structural changes -1 percent.

Within the areas hydraulics and pneumatics sales were continued weaker compared with the second quarter 2009.

Operating profit and cash flow. Operating profit in the quarter was lower compared with the year-earlier period. The result has been positive affected from continued general capacity adaptations to the prevailing market conditions. These adaptations are progressing according to plan and are expected to generate a continued positive effect in the fourth quarter of 2009.

Despite a lower operating profit, cash flow remained strong, primarily due to reduction in inventories.

Other. The business area continued to strengthen its market positions during the quarter and continued developing its operations in new markets, such as Brazil, where a new plant will be opened in the fourth quarter of 2009.

	Jul - Sep			Jan - Sep		Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Net sales	630	866	2,362	2,805	3,265	3,708
Operating profit	52	84	237	303	297	363
Operating margin (ROS), %	8.2	9.7	10.0	10.8	9.1	9.8
Operating cash flow	124	70	449	123	455	129
Operating cash flow/operating profit, %	238	83	189	41	153	36
Including items affecting comparability
Operating profit	44	75	225	293	280	348
ROS, %	6.7	8.7	9.5	10.4	8.5	9.4

Trelleborg Wheel Systems

Additional key ratios on pages 15 - 17

Market trend. In the agricultural sector, demand continued to decline generally compared with the second quarter of 2009. Global demand for industrial tires remained at a very low level during the quarter, with a considerable decline in OEM, while aftermarket demand leveled off.

Net sales. In the third quarter, net sales fell by 27 percent compared with the year-earlier period. Organic sales declined by 33 percent, exchange-rate effects were +6 percent and structural changes 0 percent.

Sales of agricultural tires were lower than in the year-earlier period, with some variation in the different sub-segments, where the trend for large dimensions was better in relative terms. Sales of industrial tires were significantly lower than in the year-earlier period.

Operating profit and cash flow. The lower operating profit was primarily due to reduced volumes, but has been positive affected from the favorable product and channel mix.

Cash flow improved during the quarter compared with the year-earlier period, primarily due to the release of working capital.

Other. The brand transfer that has been under way for a number of years from Pirelli as a brand of agricultural tire to the Trelleborg brand is now largely completed. The main part of the radial tires in large and mid-size dimensions is now marketed under the Trelleborg brand.

Financial accounts

Income Statements

Group		Jul - Sep Jan - Sep				Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Net sales	6,559	7,527	20,303	23,920	27,646	31,263
Cost of goods sold	-4,934	-5,712	-15,597	-17,907	-21,293	-23,603
Gross profit	1,625	1,815	4,706	6,013	6,353	7,660
Selling expenses	-536	-570	-1,758	-1,752	-2,443	-2,437
Administrative expenses	-565	-695	-1,865	-2,214	-2,633	-2,982
Research and development costs	-147	-147	-466	-449	-620	-603
Other operating income/expense	-11	-145	-49	-438	-893	-1,282
Profit from part. in assoc. companies	5	5	8	14	12	18
Operating profit	371	263	576	1,174	-224	374
Financial income and expenses	-83	-130	-335	-387	-488	-540
Profit before tax	288	133	241	787	-712	-166
Tax	-72	-31	86	-203	197	-92
Profit for the period	216	102	327	584	-515	-258
Profit attributable to:
Equity holders of the parent	213	102	322	578	-523	-267
Minority interest	3	0	5	6	8	9

Earnings per share		Jul - Sep		Jan - Sep	Oct 2008 -	Full year
SEK	2009	2008	2009	2008	Sep 2009	2008
Earnings per share	0.80	0.50	1.40	2.90	-2.35	-1.35
Number of shares
End of period	271,071,783	90,357,261	271,071,783	90,357,261	271,071,783	90,357,261
Average number 1)	271,071,783	198,178,530	230,575,532	198,178,530	222,476,281	198,178,530
1) Following the rights issue, the average number of shares was adjusted according to guidelines in IAS 33.

Statements of comprehensive income

		Jul - Sep		Jan - Sep	Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Profit for the period	216	102	327	584	-515	-258
Other comprehensive income
Cash flow hedges	14	-15	53	18	-112	-147
Hedging of net investment	604	-434	574	-276	-347	-1,197
Translation difference	-1,320	847	-1,133	410	522	2,065
Income tax relating to components of other comprehensive income	-159	121	-151	77	125	353
Other comprehensive income, net of tax	-861	518	-657	229	188	1,074
Total comprehensive income	-645	620	-330	813	-327	816
Profit attributable to:
Equity holders of the parent	-646	616	-333	820	-345	808
Minority interest	1	4	3	-7	18	8

Balance Sheets
Group	Sep 30	Sep 30	Dec 31
SEK M	2009	2008	2008
Property, plant and equipment	6,573	6,614	7,137
Intangible assets	11,104	10,725	11,833
Financial assets	1,529	1,125	1,586
Total non-current assets	19,206	18,464	20,556
Inventories	3,470	4,620	4,775
Current operating receivables	6,179	8,429	7,505
Current interest-bearing receivables	88	131	178
Cash and cash equivalents	691	521	749
Total current assets	10,428	13,701	13,207
Total assets	29,634	32,165	33,763
Shareholders' equity, excluding minority share	11,916	10,165	10,153
Minority share	86	94	85
Total equity	12,002	10,259	10,238
Non-current interest-bearing liabilities	7,221	8,367	10,834
Other non-current liabilities	1,627	1,774	1,977
Total non-current liabilities	8,848	10,141	12,811
Interest-bearing current liabilities	2,398	3,996	2,805
Other current liabilities	6,386	7,769	7,909
Total current liabilities	8,784	11,765	10,714
Total equity and liabilities	29,634	32,165	33,763

Specification of changes in equity	Sep 30	Sep 30	Dec 31
SEK M	2009	2008	2008
Attributable to equity holders of the parent
Opening balance, January 1	10,153	9,932	9,932
Total comprehensive income	-333	820	808
Dividend	-	-587	-587
Reduction of share capital 1)	-2,078	-	-
Bonus issue 1)	2,078	-	-
Rights issue	2,169	-	-
Transaction costs 2)	-73	-	-
Closing balance	11,916	10,165	10,153
Attributable to minority interest
Opening balance, January 1	85	120	120
Total comprehensive income	3	-7	8
Dividend	-2	-3	-3
Acquisitions	-	-16	-40
Closing balance	86	94	85
Sum total equity, closing balance	12,002	10,259	10,238

1) In accordance with the proposal by the Board of Directors, with the purpose to render possible and facilitate the rights issue, the Annual General Meeting on April 23, 2009 resolved to reduce the share capital by SEK 2,078,217,003, without redemption of shares, changing the shares' quota value from SEK 25 to SEK 2. The Annual General Meeting also resolved on a bonus issue of SEK 2,078,217,003, as a measure to ensure that neither the restricted equity, nor the share capital, will be reduced.

2) Includes tax effect of 25,8 SEK M (26,3%), which is not affecting cash flow during this period.

Cash flow statements

Group		Jul - Sep		Jan - Sep	Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Operating activities
Operating profit	371	263	576	1,174	-224	374
Adjustments for items not included in cash flow:
Depreciation, property, plant and equipment	232	228	718	658	957	897
Depreciation, intangible assets	42	39	126	110	173	157
Impairment losses, property, plant and equipment	1	26	29	161	260	392
Impairment losses, intangible assets	2	1	3	1	34	32
Provision for restructuring costs	38	163	129	475	670	1,016
Undistributed result from part. in assoc. companies	-5	-6	16	-10	11	-15
	681	714	1,597	2,569	1,881	2,853
Interest received and other financial items	4	124	10	128	67	185
Interest paid and other financial items	-59	-201	-490	-409	-594	-513
Taxes paid	-87	-87	-162	-301	-263	-402
Cash flow from operating activities before changes in
working capital	539	550	955	1,987	1,091	2,123
Cash flow from changes in working capital:
Change in inventories	338	-100	1,122	-360	1,348	-134
Change in operating receivables	-95	750	857	-247	2,173	1,069
Change in operating liabilities	85	-398	-678	-43	-1,383	-748
Utilization of restructuring provisions	-218	-102	-522	-274	-695	-447
Cash flow from operating activities	649	700	1,734	1,063	2,534	1,863
Investing activities
Acquisitions	-1	-57	-50	-736	-116	-802
Disposals 1)	-	-	-	-2	-	-2
Capital expenditure, property, plant and equipment	-141	-305	-567	-907	-1,027	-1,367
Capital expenditure in intangible assets	-14	-32	-51	-80	-130	-159
Sale of non-current assets	2	5	21	60	41	80
Cash flow from investing activities	-154	-389	-647	-1,665	-1,232	-2,250
Financing activities
Rights issue	0	-	2,070	-	2,070	-
Change in interest-bearing investments	750	-53	818	-36	522	-332
Change in interest-bearing liabilities	-1,226	-248	-4,008	1,216	-3,736	1,488
Dividend paid to shareholders	-	-	-	-587	-	-587
Dividend paid to minority	-	-	-2	-3	-2	-3
Cash flow from the financing activities	-476	-301	-1,122	590	-1,146	566
Cash flow for the period	19	10	-35	-12	156	179
Cash and cash equivalents:
At beginning of the period	701	492	749	530	521	530
Exchange rate differences	-29	19	-23	3	14	40
Cash and cash equivalents at end of period	691	521	691	521	691	749

1) Including cash flow in entities for which an agreement regarding discontinuation has been reached

TRELLEBORG AB INTERIM REPORT JULY – SEPTEMBER 2009

Group review
	Jul - Sep			Jan - Sep	Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Net sales	6,559	7,527	20,303	23,920	27,646	31,263
EBITDA	685	719	1,581	2,579	1,870	2,868
Operating profit	410	450	735	1,806	727	1,798
Profit for the period	245	231	447	1,016	320	889

Net sales		Jul - Sep			Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Trelleborg Engineered Systems	2,740	2,957	8,470	8,984	11,714	12,228
Trelleborg Automotive	2,129	2,264	6,077	7,630	7,953	9,506
Trelleborg Sealing Solutions	1,104	1,480	3,509	4,673	4,870	6,034
Trelleborg Wheel Systems	630	866	2,362	2,805	3,265	3,708
Eliminations	-44	-40	-115	-172	-156	-213
Total	6,559	7,527	20,303	23,920	27,646	31,263

EBITDA 1)		Jul - Sep		Jan - Sep	Oct 2008 -	Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	325	345	815	1,126	1,106	1,417
Trelleborg Automotive	168	31	205	294	-26	63
Trelleborg Sealing Solutions	149	270	323	895	513	1,085
Trelleborg Wheel Systems	75	105	311	369	395	453
Other companies	-1	-2	-5	-7	-6	-8
Group items	-31	-30	-68	-98	-112	-142
Total excluding items affecting comparability	685	719	1,581	2,579	1,870	2,868
Items affecting comparability
Trelleborg Engineered Systems	-7	-13	-8	-32	-39	-63
Trelleborg Automotive	-10	-138	-33	-399	-115	-481
Trelleborg Sealing Solutions	-12	-	-76	-20	-83	-27
Trelleborg Wheel Systems	-9	-9	-12	-10	-17	-15
Legal non-recurring items	-	-3	-	-14	-416	-430
Total items affecting comparability	-38	-163	-129	-475	-670	-1,016
Total including items affecting comparability	647	556	1,452	2,104	1,200	1,852

1) Operating profit before depreciations, amortizations and impairment losses.

EBITDA 1)	Jul - Sep			Jan - Sep	Oct 2008 -	Full year
%	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	11.8	11.5	9.6	12.3	9.3	11.4
Trelleborg Automotive	7.8	1.4	3.3	3.9	neg	0.7
Trelleborg Sealing Solutions	13.5	18.3	9.2	19.2	10.5	18.0
Trelleborg Wheel Systems	11.9	12.0	13.2	13.1	12.1	12.2
Total excluding items affecting comparability	10.4	9.5	7.7	10.7	6.7	9.1
Including items affecting comparability
Trelleborg Engineered Systems	11.5	11.0	9.5	12.0	9.0	10.9
Trelleborg Automotive	7.3	neg	2.8	neg	neg	neg
Trelleborg Sealing Solutions	12.7	18.3	7.0	18.7	8.8	17.5
Trelleborg Wheel Systems	10.5	11.1	12.7	12.8	11.6	11.8
Total including items affecting comparability	9.9	7.3	7.1	8.7	4.3	5.9

1) Operating profit before depreciations, amortizations and impairment losses excluding participations in associated companies in relation to net sales.

TRELLEBORG AB INTERIM REPORT JULY – SEPTEMBER 2009

Operating profit		Jul - Sep		Jan - Sep	Oct 2008 -	Full year 2008
SEK M	2009	2008	2009	2008	Sep 2009
Excluding items affecting comparability
Trelleborg Engineered Systems	236	260	540	891	732	1,083
Trelleborg Automotive	63	-83	-118	-30	-467	-379
Trelleborg Sealing Solutions	94	221	157	752	295	890
Trelleborg Wheel Systems	52	84	237	303	297	363
Other companies	-2	-1	-7	-7	-9	-9
Group items	-33	-31	-74	-103	-121	-150
Total excluding items affecting comparability	410	450	735	1,806	727	1,798
Items affecting comparability
Trelleborg Engineered Systems	-11	-12	-17	-34	-62	-79
Trelleborg Automotive	-10	-163	-33	-549	-352	-868
Trelleborg Sealing Solutions	-10	-	-97	-25	-104	-32
Trelleborg Wheel Systems	-8	-9	-12	-10	-17	-15
Legal non-recurring items	-	-3	-	-14	-416	-430
Total items affecting comparability	-39	-187	-159	-632	-951	-1,424
Total including items affecting comparability	371	263	576	1,174	-224	374

Operating margin, (ROS) 1)	Jul - Sep			Jan - Sep	Oct 2008 -	Full year
%	2009	2008	2009	2008	Sep 2009	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	8.5	8.6	6.3	9.7	6.1	8.6
Trelleborg Automotive	2.9	neg	neg	neg	neg	neg
Trelleborg Sealing Solutions	8.6	14.9	4.5	16.1	6.1	14.8
Trelleborg Wheel Systems	8.2	9.7	10.0	10.8	9.1	9.8
Total excluding items affecting comparability	6.2	5.9	3.6	7.5	2.6	5.7
Including items affecting comparability
Trelleborg Engineered Systems	8.2	8.2	6.1	9.3	5.6	8.0
Trelleborg Automotive	2.4	neg	neg	neg	neg	neg
Trelleborg Sealing Solutions	7.7	14.9	1.7	15.6	3.9	14.2
Trelleborg Wheel Systems	6.7	8.7	9.5	10.4	8.5	9.4
Total including items affecting comparability	5.6	3.4	2.8	4.8	neg	1.1

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

Capital employed 1)	Sep 30	Sep 30	Dec 31
SEK M	2009	2008	2008
Trelleborg Engineered Systems	6,796	7,390	7,812
Trelleborg Automotive	4,526	5,256	5,102
Trelleborg Sealing Solutions	7,175	7,404	8,046
Trelleborg Wheel Systems	1,818	1,921	2,145
Other companies	48	17	19
Group items	52	17	-3
Provision for restructing costs and legal costs	-463	-442	-883
Total	19,952	21,563	22,238

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 INTERIM REPORT JULY – SEPTEMBER 2009

Return on capital employed, (ROCE) 1)	Oct 2008 -	Oct 2007-	Full year
%	Sep 2009	Sep 2008	2008
Excluding items affecting comparability
Trelleborg Engineered Systems	9.5	18.2	15.5
Trelleborg Automotive	neg	0.1	neg
Trelleborg Sealing Solutions	3.8	13.5	12.3
Trelleborg Wheel Systems	14.3	20.7	19.5
Total excluding items affecting comparability	3.2	11.3	8.4
Including items affecting comparability
Trelleborg Engineered Systems	8.8	17.5	14.5
Trelleborg Automotive	neg	neg	neg
Trelleborg Sealing Solutions	2.5	13.2	11.9
Trelleborg Wheel Systems	13.6	20.2	18.9
Total including items affecting comparability	neg	7.5	1.8

1) Operating profit in relation to average capital employed.

Cash flow report				Capital		Sold non		Change in		Total cash flow
		EBITDA 1)		expenditure		current assets		working capital		Jan - Sep	Oct 2008 -
SEK M	2009	2008	2009	2008	2009	2008	2009	2008	2009	2008	Sep 2009
Trelleborg Engineered Systems	872	1,150	-195	-330	13	8	573	-356	1,263	472	1,586
Trelleborg Automotive	231	330	-246	-367	3	2	235	-16	223	-51	333
Trelleborg Sealing Solutions	340	912	-62	-136	4	4	243	-133	525	647	800
Trelleborg Wheel Systems	323	380	-113	-142	1	2	238	-117	449	123	455
Other companies	-6	-6	-	-	-	-	-2	3	-8	-3	-10
Group items	-163	-197	-2	-12	-	44	14	-31	-151	-196	-261
Operating cash flow	1,597	2,569	-618	-987	21	60	1,301	-650	2,301	992	2,903
Utilization of restructuring provisions									-522	-274	-695
Dividend paid to minority									-2	-3	-2
Financial items									-480	-279	-529
Paid tax									-162	-301	-263
Free cash flow									1,135	135	1,414
Acquisitions									-50	-736	-116
Disposals 2)									-	-2	-
Dividend paid to shareholders									-	-587	-
Rights issue									2,070	-	2,070
Sum net cash flow									3,155	-1,190	3,368

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

Acquisitions, January - September
SEK M	2009	2008
Purchase price	24	725
Acquisition expenses 1)	26	11
Net realizable value of acquired assets	24	398
Goodwill	26	338
Acquired assets and liabilities:
Property, plant and equipment	19	163
Intangible assets	-	53
Deferred tax	-	-7
Associated companies	2	-
Operating assets	-	264
Minority share	-	16
Operating liabilities	3	-91
Total	24	398
Profit/Loss for the period	-	7
Profit/Loss for the period in acquired entities January - September	-	9

1) Acquisitions costs relating to previous years acquisitions.

Parent company

Income Statements

Parent company	Jul - Sep			Jan - Sep		Full year
SEK M	2009	2008	2009	2008	Sep 2009	2008
Administrative expenses	-66	-87	-219	-249	-309	-339
Other operating income	16	25	191	220	234	263
Operating profit	-50	-62	-28	-29	-75	-76
Financial income and expenses	59	-323	-128	-878	-702	-1,452
Profit before tax	9	-385	-156	-907	-777	-1,528
Tax	38	107	104	257	175	328
Profit for the period	47	-278	-52	-650	-602	-1,200

Balance Sheets
Parent company	Sep 30	Sep 30	Dec 31
SEK M	2009	2008	2008
Property, plant and equipment	29	31	30
Intangible assets	10	14	12
Financial assets	33,824	33,061	33,084
Total non-current assets	33,863	33,106	33,126
Current operating receivables	91	387	92
Current interest-bearing receivables	1,562	1,475	1,956
Cash and cash equivalents	-	3	-
Total current assets	1,653	1,865	2,048
Total assets	35,516	34,971	35,174
Shareholders' equity	10,709	8,965	8,645
Total equity	10,709	8,965	8,645
Non-current interest-bearing liabilities	51	129	52
Other non-current liabilities	3	8	6
Total non-current liabilities	54	137	58
Interest-bearing current liabilities	24,689	25,805	26,399
Other current liabilities	64	64	72
Total current liabilities	24,753	25,869	26,471
Total equity and liabilities	35,516	34,971	35,174

Invitation to telephone conference on October 29 at 9:30 a.m.

A presentation and telephone conference will be held on October 29 at 9:30 a.m. The presentation will be held at Operaterrassen in Stockholm. To participate in the telephone conference, call +46 (0)8-5051 3793 or +44 20 7806 1967 and state the code 1005943 or the password "Trelleborg". The conference will also be broadcast in real time on the Internet. Visit our website at www.trelleborg.com/en/Investors/Presentations for internet link and presentation materials.

Calendar

Capital Markets Day in Stockholm December 3, 2009 Interim report October-December 2009 February 16, 2010 Interim report January-March 2010 April 20, 2010 Annual General Meeting in Trelleborg April 20, 2010, 5:00 p.m.

Fore further information, please contact: Investors/analysts

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

Media

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

Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group can be ordered from: Trelleborg AB, Corporate Communications, by telephone on +46 (0)410-670 09, by e-mail at 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 Tel: +46 (0)410-670 00, Fax: +46 (0)410-427 63 info@trelleborg.com www.trelleborg.com

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

This is information of the type that Trelleborg AB (publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on Thursday, October 29, 2009 at 7:45 a.m.