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Trelleborg — Interim / Quarterly Report 2010
Oct 28, 2010
2985_10-q_2010-10-28_14fbc3e8-b1dc-4a08-b128-aee8da584ffa.pdf
Interim / Quarterly Report
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Third quarter 2010
President and CEO Peter Nilsson
"Demand in the third quarter of 2010 was favorable. Organic sales rose 15 percent compared with the third quarter of 2009.
In terms of earnings and margins, the third quarter of 2010 was strong; the strongest ever third quarter for the Trelleborg Group, within existing structure. The EBITDA margin rose to 12.5 percent compared with 10.8 percent in the third quarter of 2009. The EBITDA margin for the most recent twelve-month period for the first time reached our financial target of 12 percent.
The earnings and margin trend demonstrates that we continue to derive beneficial effect from the underlying improved structure.
We are also continuing our efforts to increase our presence in selected, profitable segments and in expanding geographical markets."
- Net sales increased to SEK 6,865 M (6,230).
- Operating profit rose to SEK 545 M (381). Items affecting comparability amounted to an expense of SEK 55 M (expense: 31).
- Earnings per share increased to SEK 1.30 SEK (0.90).
- Operating cash flow was SEK 439 M (936). Free cash flow was SEK 252 M (607).
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | |
|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 |
| Continuing operations | ||||
| Net sales | 6,865 | 6,230 | 20,969 | 19,288 |
| Operating profit | 545 | 381 | 1,698 | 650 |
| Profit for the period | 355 | 235 | 1,094 | 446 |
| Earnings per share, SEK | 1.30 | 0.90 | 4.00 | 1.90 |
| Operating profit, excl. items affecting comparability |
600 | 412 | 1,830 | 786 |
| Earnings per share, SEK, excl. items affecting comparability |
1.45 | 1.00 | 4.35 | 2.35 |
Market outlook for the fourth quarter of 2010. Overall, demand is
Market outlook for the fourth quarter of 2010
expected to remain in line with or slightly better than the third quarter of 2010, adjusted for seasonal variations.
TRELLEBORG AB INTERIM REPORT JULY – SEPTEMBER 2010
| Key ratios | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | ||||||
| Net sales | 6,865 | 6,230 | 20,969 | 19,288 | 27,358 | 25,677 |
| Operating profit | 545 | 381 | 1,698 | 650 | 1,890 | 842 |
| Profit before tax | 487 | 296 | 1,521 | 328 | 1,643 | 450 |
| Profit for the period | 355 | 235 | 1,094 | 446 | 1,183 | 535 |
| - attributable to equity holders of the parent | 351 | 232 | 1,078 | 441 | 1,162 | 525 |
| - attributable to minority interest | 4 | 3 | 16 | 5 | 21 | 10 |
| Earnings per share, SEK | 1.30 | 0.90 | 4.00 | 1.90 | 4.30 | 2.20 |
| Operating key ratios | Jul - Sep | Jul - Sep | Jan - Mar | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Operating profit | 600 | 412 | 1,830 | 786 | 2,240 | 1,196 |
| Earnings per share, SEK | 1.45 | 1.00 | 4.35 | 2.35 | 5.20 | 3.20 |
| Operating margin (ROS), % | 8.7 | 6.5 | 8.7 | 4.0 | 8.2 | 4.6 |
| EBITDA, % | 12.5 | 10.8 | 12.4 | 8.3 | 12.0 | 8.9 |
The Group's key figures*
July – September 2010
Organic sales rose 15 percent
Net sales. The Trelleborg Group's net sales for the third quarter of 2010 increased to SEK 6,865 M (6,230), up 10 percent compared with the yearearlier period. Organic sales rose 15 percent. Exchange-rate effects were negative 5 percent and effects from structural changes were 0 percent.
Trelleborg's sales of input goods to the industrial sector and products to the light-vehicles and agricultural industry were significantly higher than in the third quarter 2009. Within the project-related segments, which include offshore oil/gas and infrastructure construction, demand in general was continuously good, while invoicing were slightly below the level reported in the third quarter 2009.
Compared with the second quarter 2010, sales of input goods to the industrial sector and sales to the light-vehicles industry were slightly higher, adjusted for seasonal variations. Sales within project-related segments, offshore oil/gas and infrastructure construction, were in line with the second quarter of 2010, while sales for the agricultural sector were higher than in the second quarter 2010.
| Change in net sales, continuing operations | Jul - Sep | Jul - Sep |
|---|---|---|
| % | 2010 | 2009 |
| Organic sales | +15 | -19 |
| Structural changes | 0 | -1 |
| Currency impact | -5 | +7 |
| Total | +10 | -13 |
* Relates to continuing operations, excluding the unit in the Trelleborg Automotive business area that was divested during the second quarter of 2010.
Operating profit increased to SEK 545 M (381) Earnings. Operating profit for the quarter increased to SEK 545 M (381). Items affecting comparability were an expense of SEK 55 M (expense: 31), see page 5.
Compared with the year-earlier period, operating margins remained strong and improved as a result of volume growth and a more efficient structure.
Cost increases for raw materials, which have a delayed impact on earnings, had a negative effect on the result during the quarter, mainly affecting Trelleborg Automotive.
Central costs for the quarter were somewhat above normal due to costs of a nonrecurring nature.
Exchange-rate fluctuations arising in the translation of earnings of foreign Group companies had a negative impact on operating profit of about SEK 26 M compared with the corresponding period in 2009.
The Group posted a net financial expense of SEK 58 M (expense: 85), corresponding to an average interest rate of 3.0 percent (3.5).
Profit before tax increased to SEK 487 M (296). Net profit totaled SEK 355 M (235).
The tax rate was 27 percent, positively affected of country mix. Earnings per share totaled SEK 1.30 (0.90).
Return on capital. Return on shareholders' equity, excluding items affecting comparability, for the most recent twelve-month period amounted to 11.9 percent (full-year 2009: 6.9), while the return on capital employed, excluding items affecting comparability, for the same period was 11.3 percent (full-year 2009: 5.5).
| Continuing operations |
Excl. items affecting comparability |
|||||
|---|---|---|---|---|---|---|
| % | Oct 2009 - Sep 2010 |
Full year 2009 |
Oct 2009 - Sep 2010 |
Full year 2009 |
||
| Return on capital employed | 9.7 | 4.0 | 11.3 | 5.5 | ||
| Return on shareholders' equity | 9.8 | 4.7 | 11.9 | 6.9 |
Free cash flow was SEK 252 M (607)
Cash flow. Operating cash flow for the period was SEK 439 M (936). Cash flow was impacted by continued positive generation of earnings and changes in working capital in the amount of SEK 263 M (pos: 403), which was affected by higher sales in the latter part of the quarter.
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | ||||||
| Operating cash flow | 439 | 936 | 1,271 | 2,335 | 2,157 | 3,221 |
| Utilization of restructuring provisions | -99 | -183 | -303 | -434 | -401 | -532 |
| Dividend paid to minority | - | - | -1 | -2 | -1 | -2 |
| Financial items | -26 | -58 | -273 | -467 | -326 | -520 |
| Paid tax | -62 | -88 | -198 | -148 | -297 | -247 |
| Free cash flow | 252 | 607 | 496 | 1,284 | 1,132 | 1,920 |
Debt/equity ratio was 59 percent (74)
Net debt. Net debt decreased SEK 861 M compared with the preceding quarter and amounted to SEK 7,097 M, as a result of exchange-rate effects and a positive cash flow. The debt/equity ratio was 59 percent (74).
| Change in net debt | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Full year |
|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | 2009 |
| Net debt, opening balance | -7,958 | -10,046 | -8,369 | -12,706 | -12,706 |
| Net cash flow for the period excl. rights issue | 309 | 495 | 335 | 1,085 | 1,680 |
| Rights issue | - | - | - | 2,070 | 2,070 |
| Additional payment, disposals | - | - | 77 | - | - |
| Disposals | - | - | 57 | - | - |
| Borrowing costs | - | -2 | - | - | - |
| Exchange rate differences | 552 | 720 | 803 | 718 | 587 |
| Net debt, closing balance | -7,097 | -8,833 | -7,097 | -8,833 | -8,369 |
| Debt/equity ratio, % | 59 | 74 | 68 |
January – September 2010
Net sales. The Trelleborg Group's net sales for the first nine months of 2010 amounted to SEK 20,969 M (19,288), up 9 percent compared with 2009. Organic sales rose 16 percent. Exchange-rate effects were negative 7 percent and effects of structural changes 0 percent.
Earnings. Operating profit for the first nine months of 2010 totaled SEK 1,698 M (650). Items affecting comparability amounted to an expense of SEK 132 M (expense: 136), refer to page 5. Profit before tax was SEK 1,521 M (328). Net profit amounted to SEK 1,094 M (446). Earnings per share amounted to SEK 4.00 (1.90). Exchange-rate fluctuations arising in the translation of earnings of foreign Group companies had a negative impact on operating profit of about SEK 111 M compared with the corresponding period in 2009.
Operating cash flow for the first nine months was SEK 1,271 M (2,335)
Cash flow. Operating cash flow for the first nine months of 2010 totaled SEK 1,271 M (2,335); a result of a continued improvement in the generation of earnings from operations and an increase in working capital resulting from growth in sales and fluctuations in project-related operations. In 2009, working capital was released, having a positive effect on cash flow.
Capital employed and shareholders' equity. Capital employed amounted to SEK 18,500 M at the end of the period, compared with SEK 19,732 M at the same date in 2009, and was mainly influenced by exchange-rate effects and a continued low rate of investment in relation to depreciation/ amortization.
Shareholders' equity at the end of the period was SEK 11,834 M, excluding minority shares. The equity/assets ratio was 44 percent (40). Items affecting comparability during the quarter: Expense of SEK 55 M before tax and SEK 41 M after tax
Items affecting comparability
Items affecting comparability. Items affecting comparability during the third quarter of 2010 totaling an expense of SEK 55 M (expense: 31) before tax were excluded from the calculation of the Group's operating key figures. Items affecting comparability comprise restructuring costs for previously announced and ongoing measures in all of the Group's four business areas. Remaining costs related to these measures totaling about SEK 60 M mainly pertain to Trelleborg Engineered Systems and will primarily be charged against the fourth quarter of 2010.
Trade union consultations concerning the closure of the operations in Skellefteå, Sweden, which started during the second quarter 2010, were discontinued and the closure will not be implemented, primarily due to significantly changed market conditions. New union consultations commenced at the units in Skellefteå and Forsheda, Sweden, regarding the focusing of production. Consultations were also initiated concerning the consolidation of parts of operations in Germany at the Trelleborg Automotive business area. The total costs for these new measures in Sweden and Germany is estimated to approximately SEK 165 M, where the timing for the impact on the result is dependent on ongoing consultations.
In total, the ongoing and new measures, including expenses accrued to date during the year, are estimated to impact full-year earnings in 2010 by about SEK 260 M.
| Items affecting comparability | ||||||
|---|---|---|---|---|---|---|
| in operating profit 1) | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | ||||||
| Trelleborg Engineered Systems | -44 | -11 | -85 | -17 | -231 | -163 |
| Trelleborg Automotive | -1 | -2 | -22 | -10 | -35 | -23 |
| Trelleborg Sealing Solutions | -9 | -10 | -14 | -97 | -69 | -152 |
| Trelleborg Wheel Systems | -1 | -8 | -8 | -12 | -12 | -16 |
| Other | - | - | -3 | - | -3 | - |
| Total items affecting comparability | -55 | -31 | -132 | -136 | -350 | -354 |
1) Main part reported as other operating expenses
The Group's operating key figures
July – September 2010
Operating profit rose to SEK 600 M (412)
EBITDA-margin increased to SEK 12.5 percent (10.8)
Earnings. Operating profit increased to SEK 600 M (412). The operating margin was 8.7 percent (6.5).
Operating profit before depreciation (EBITDA) rose to SEK 861 M (681). The EBITDA margin amounted to 12.5 percent (10.8).
Consolidated profit before tax amounted to SEK 542 M (327) and net profit to SEK 396 M (257). Earnings per share totaled SEK 1.45 (1.00).
January – September 2010
Earnings. Operating profit increased to SEK 1,830 M (786). The operating margin was 8.7 percent (4.0).
Operating profit before depreciation (EBITDA) rose to SEK 2,614 M (1,613). The EBITDA margin amounted to 12.4 percent (8.3).
Consolidated profit before tax amounted to SEK 1,653 M (464) and net profit to SEK 1,193 M (545). Earnings per share totaled SEK 4.35 (2.35).
Jämförelsestörande poster i kvartalet -xx MSEK före skatt och -xx MSEK efter Nominations Committee for the 2011 Annual General Meeting
Other
Nominations Committee. At Trelleborg AB's Annual General Meeting on April 20, 2010, 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 2011 Annual General Meeting for resolution.
The following persons were asked to participate in the Nominations Committee and agreed:
- Rolf Kjellman, Henry and Gerda Dunker Foundation
- Henrik Didner, Didner & Gerge Funds
- Ramsay Brufer, Alecta
- Johan Held, AFA Insurance
- Thomas Eriksson, Swedbank Robur Funds.
The Annual General Meeting will be held in Trelleborg on April 20, 2011 at 5:00 p.m. Shareholders wishing to submit proposals regarding candidates for the Board of Trelleborg may address these by e-mail to [email protected] or directly to the Chairman of the Board Anders Narvinger or any of the above-mentioned members of the Nominations Committee.
Risk management
Risks/risk management at Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in systems and processes. Trelleborg applies an Enterprise Risk Management process (ERM) with the overall objective of ensuring that risks are managed systematically, that the right priorities are made and that risks are managed as efficiently as possible.
The principal risks and uncertainties currently faced by the Group relate to the economy's effect on demand, supply and price movements of raw materials and components, legal risks, structural programs, financial business environment risks and changes in value of fixed assets.
For further information regarding the Group's risks, risk exposure and risk management, refer to the Trelleborg Annual Report and www.trelleborg.com.
The Group's market outlook
Market outlook for fourth quarter of 2010. Overall, demand is expected to remain in line with or slightly better than the third quarter of 2010, adjusted for seasonal variations.
Outlook from the interim report published on July 21, 2010: Market outlook for the third quarter of 2010. Overall, demand is expected to remain in line with or slightly better than the second quarter of 2010, adjusted for seasonal variations.
Trelleborg, October 28, 2010 Board of Directors of Trelleborg AB (publ)
_____________________________________________________________
This report was prepared in accordance with IAS 34 Interim Financial Reporting and applicable rules in the Annual Accounts Act. The interim report for the Parent Company was prepared in accordance with chapter 9 of the Annual Accounts Act, Interim Reports. Unless otherwise stated, the accounting policies applied by the Group and Parent Company correspond to the accounting policies applied in the preparation of the most recent annual report.
The new and revised accounting policy for 2010 that may be expected to have a material impact on the consolidated financial statements is IFRS 3 Business Combinations. The revised standard continues to apply the acquisition method to business combinations, but with some significant changes. For example, all payments for purchases of a business are recognized at fair value on the date of acquisition, with subsequent contingent payments classified as debt later remeasured in profit and loss. All acquisition-related transaction costs should be expensed. From January 1, 2010 the Group will apply IFRS 3 (Revised) to all business combinations.
This report has not been subject to special review by the company's auditors.
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excl. items affecting comparability | ||||||
| Net sales | 2,640 | 2,740 | 8,060 | 8,470 | 10,759 | 11,169 |
| Operating profit | 256 | 236 | 698 | 540 | 902 | 744 |
| Operating margin (ROS), % | 9.7 | 8.5 | 8.7 | 6.3 | 8.5 | 6.6 |
| EBITDA margin, % | 12.9 | 11.8 | 12.1 | 9.6 | 11.8 | 9.9 |
| Operating cash flow | 208 | 476 | 296 | 1,263 | 731 | 1,698 |
| Operating cash flow/operating profit, % | 81 | 202 | 42 | 234 | 81 | 228 |
| Including items affecting comparability | ||||||
| Operating profit | 212 | 225 | 613 | 523 | 671 | 581 |
| ROS, % | 8.0 | 8.2 | 7.7 | 6.1 | 6.3 | 5.2 |
Trelleborg Engineered Systems
Additional key ratios on pages 15 - 18
Market trend. Overall, demand from the segment general industry was significantly higher compared with the year-earlier period. Demand in the project-related segments offshore oil/gas and infrastructure construction was favorable. As a result of the oil spill in the Gulf of Mexico, authorities in the US have taken decision regarding stricter requirements relating to oil exploration in the deep sea in this area. The requirements and the uncertainty relating to these rules will result in some delay of order intake and deliveries for projects in this region in the coming quarters.
Net sales. Net sales during the quarter were 4 percent lower than in the corresponding period in 2009. Organic sales rose 1 percent, exchange-rate effects were negative 5 percent and effects of structural changes 0 percent. Within the project-related segments, which include offshore oil/gas and infrastructure construction, invoicing was slightly below the level reported in the third quarter 2009.
Operating profit and cash flow. Compared with the preceding year, operating profit and operating margin for the quarter improved slightly, primarily due to a generally enhanced cost structure.
To further improve competitiveness and the production structure, the consolidation and focusing of production units is taking place in a number of countries in Europe.
Operating cash flow for the quarter was affected by an increase in working capital, which was mainly a consequence of fluctuations in projectrelated operations.
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excl. items affecting comparability | ||||||
| Net sales | 2,061 | 1,800 | 6,449 | 5,062 | 8,407 | 7,020 |
| Operating profit | 95 | 65 | 407 | -67 | 508 | 34 |
| Operating margin (ROS), % | 4.4 | 3.4 | 6.1 | neg | 5.9 | 0.4 |
| EBITDA margin, % | 9.1 | 8.9 | 10.6 | 4.6 | 10.5 | 6.1 |
| Operating cash flow | -29 | 176 | 403 | 257 | 597 | 451 |
| Operating cash flow/operating profit, % | neg | 271 | 99 | neg | 118 | 1,326 |
| Including items affecting comparability | ||||||
| Operating profit | 94 | 63 | 385 | -77 | 473 | 11 |
| ROS, % | 4.3 | 3.4 | 5.8 | neg | 5.4 | 0.0 |
Trelleborg Automotive
Additional key ratios on pages 15 - 18
Market trend. During the quarter, global light-vehicle production increased significantly compared with the corresponding period in 2009. Production in all geographic regions was higher, with the exception of Western Europe. The largest increase in percentage terms was recorded in North America.
Net sales. Net sales during the quarter increased 15 percent compared with the corresponding period in the preceding year. Organic sales increased 19 percent, exchange-rate effects were negative at 4 percent and effects of structural changes were 0 percent.
Operating profit and cash flow. Operating profit improved compared with the year-earlier period. Earnings were primarily improved by higher volumes and an improved cost structure resulting from implemented structural programs and other capacity and cost adaptations.
Cost increases for raw materials, which impact earnings with a certain delay, had a negative effect on the business area's result for the quarter. Continuous measures are taken in an effort to offset these.
The business area continued its geographic investment in markets outside North America and Western Europe.
Operating cash flow has developed well during 2010.
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excl. items affecting comparability | ||||||
| Net sales | 1,477 | 1,104 | 4,349 | 3,509 | 5,513 | 4,673 |
| Operating profit | 238 | 94 | 660 | 157 | 783 | 280 |
| Operating margin (ROS), % | 16.1 | 8.6 | 15.2 | 4.5 | 14.2 | 6.0 |
| EBITDA margin, % | 19.8 | 13.5 | 18.7 | 9.2 | 17.9 | 10.6 |
| Operating cash flow | 309 | 240 | 678 | 525 | 936 | 783 |
| Operating cash flow/operating profit, % | 130 | 255 | 103 | 334 | 120 | 280 |
| Including items affecting comparability | ||||||
| Operating profit | 229 | 84 | 646 | 60 | 714 | 128 |
| ROS, % | 15.5 | 7.7 | 14.9 | 1.7 | 13.0 | 2.8 |
Trelleborg Sealing Solutions
Additional key ratios on pages 15 - 18
Market trend. Demand for input goods used in the industrial sector rose sharply compared with the third quarter of 2009. Demand for light vehicles and in the aerospace sector was higher than the third quarter of 2009.
Net sales. Net sales during the quarter increased 34 percent compared with the year-earlier period. Organic sales grew 41 percent, exchange-rate effects were negative 7 percent and effects of structural changes were 0 percent.
Operating profit and cash flow. Compared with the year-earlier period, operating profit continued to display a significant improvement due to volume growth and an enhanced cost structure. A good capacity utilization in manufacturing has contributed positively to the result.
The Asian markets continued to perform favorably. The business areas' investments in Asia continue and among others has a decision been taken to increase the production capacity at the operations in Shanghai, China, with 40 percent.
The closure of the unit in Somersworth, USA, and the merger of units in Czechowice, Poland, are now completed. The reorganization of units in Livorno and Modena, Italy, will be concluded during the fourth quarter 2010.
Operating cash flow remained strong in relation to the growth in sales, principally as a result of an improvement in the generation of earnings and continued efficient management of working capital.
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excl. items affecting comparability | ||||||
| Net sales | 732 | 630 | 2,252 | 2,362 | 2,881 | 2,991 |
| Operating profit | 77 | 52 | 212 | 237 | 258 | 283 |
| Operating margin (ROS), % | 10.5 | 8.2 | 9.4 | 10.0 | 8.9 | 9.5 |
| EBITDA margin, % | 13.8 | 11.9 | 12.6 | 13.2 | 12.3 | 12.8 |
| Operating cash flow | 25 | 124 | 83 | 449 | 154 | 520 |
| Operating cash flow/operating profit, % | 32 | 238 | 39 | 189 | 60 | 184 |
| Including items affecting comparability | ||||||
| Operating profit | 76 | 44 | 204 | 225 | 246 | 267 |
| ROS, % | 10.4 | 6.7 | 9.0 | 9.5 | 8.5 | 8.9 |
Trelleborg Wheel Systems
Additional key ratios on pages 15 - 18
Market trend. In the agricultural sector, demand was higher than the third quarter of 2009, partly due to earlier stock adjustments made by manufacturers of tractors. Global demand for industrial tires from manufacturers of material-handling equipment continued to improve and was considerably higher than in the corresponding period in 2009.
Net sales. Net sales during the quarter increased 16 percent compared with the preceding year. Organic sales grew 22 percent, exchange-rate effects were negative 6 percent and structural changes were 0 percent.
Operating profit and cash flow. Both third-quarter operating profit and operating margin were higher than in the year-earlier period, primarily due to volume growth in an improved cost structure.
Cost increases for raw materials, which impact earnings with a delay, had a slightly negative effect on the business area's result. Continuous measures are taken in an effort to offset these.
The business area's focus on large agricultural tires contributed to increased market shares during the quarter.
The range is continually being developed and expanded to further advance the business area's position as a complete supplier.
The business area's production of solid industrial tires has now been consolidated to Sri Lanka. Meanwhile, the unit there was expanded and streamlined through the introduction of entirely new technology for the production of this model of tire. The expanded facility was inaugurated during the quarter.
Operating cash flow was impacted by an increase in tied-up capital during the quarter, due to increased sales at the end of the period.
Financial statements
| Income Statements | ||||||
|---|---|---|---|---|---|---|
| Group | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | ||||||
| Net sales | 6,865 | 6,230 | 20,969 | 19,288 | 27,358 | 25,677 |
| Cost of goods sold | -5,039 | -4,611 | -15,303 | -14,574 | -20,043 | -19,314 |
| Gross profit | 1,826 | 1,619 | 5,666 | 4,714 | 7,315 | 6,363 |
| Selling expenses | -536 | -531 | -1,654 | -1,740 | -2,243 | -2,329 |
| Administrative expenses | -584 | -555 | -1,817 | -1,831 | -2,448 | -2,462 |
| Research and development costs | -141 | -136 | -437 | -428 | -579 | -570 |
| Other operating income/expense | -24 | -21 | -64 | -73 | -162 | -171 |
| Profit from part. in assoc. companies | 4 | 5 | 4 | 8 | 7 | 11 |
| Operating profit | 545 | 381 | 1,698 | 650 | 1,890 | 842 |
| Financial income and expenses | -58 | -85 | -177 | -322 | -247 | -392 |
| Profit before tax | 487 | 296 | 1,521 | 328 | 1,643 | 450 |
| Tax | -132 | -61 | -427 | 118 | -460 | 85 |
| Profit for the period | 355 | 235 | 1,094 | 446 | 1,183 | 535 |
| Discontinued operations | ||||||
| Net sales | - | 329 | 764 | 1,015 | 1,131 | 1,382 |
| Operating profit | - | -10 | -169 | -74 | -164 | -69 |
| Profit before tax | - | -8 | -169 | -87 | -163 | -81 |
| Profit for the period | - | -19 | -173 | -119 | -170 | -116 |
| Group, total | ||||||
| Net sales | 6,865 | 6,559 | 21,733 | 20,303 | 28,489 | 27,059 |
| Operating profit | 545 | 371 | 1,529 | 576 | 1,726 | 773 |
| Profit before tax | 487 | 288 | 1,352 | 241 | 1,480 | 369 |
| Profit for the period | 355 | 216 | 921 | 327 | 1,013 | 419 |
| - attributable to equity holders of the parent | 351 | 213 | 905 | 322 | 992 | 409 |
| - attributable to minority interest | 4 | 3 | 16 | 5 | 21 | 10 |
| Earnings per share | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | 1.30 | 0.90 | 4.00 | 1.90 | 4.30 | 2.20 |
| Discontinued operations | 0.00 | -0.05 | -0.65 | -0.50 | -0.65 | -0.50 |
| Group, total | 1.30 | 0.85 | 3.35 | 1.40 | 3.65 | 1.70 |
| Number of shares | ||||||
| End of period | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 |
| Average number 1) | 271,071,783 | 271,071,783 | 271,071,783 | 230,575,532 | 271,071,783 | 240,699,594 |
| 1) In periods before June 2009, 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.
Statements of comprehensive income
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Profit for the period | 355 | 216 | 921 | 327 | 1,013 | 419 |
| Other comprehensive income | ||||||
| Cash flow hedges | 13 | 14 | -13 | 53 | 20 | 86 |
| Hedging of net investment | 511 | 604 | 805 | 574 | 677 | 446 |
| Translation difference | -1,287 | -1,320 | -1,793 | -1,133 | -1,422 | -762 |
| Income tax relating to components of other comprehensive income |
-128 | -159 | -198 | -151 | -207 | -160 |
| Other comprehensive income, net of tax | -891 | -861 | -1,199 | -657 | -932 | -390 |
| Total comprehensive income | -536 | -645 | -278 | -330 | 81 | 29 |
| Total profit for the period | ||||||
| - attributable to equity holders of the parent | -529 | -646 | -288 | -333 | 63 | 18 |
| - attributable to minority interest | -7 | 1 | 10 | 3 | 18 | 11 |
Published on October 28, 2010 12 (22)
| Balance Sheets | |||
|---|---|---|---|
| Group | Sep 30 | Sep 30 | Dec 31 |
| SEK M | 2010 | 2009 | 2009 |
| Property, plant and equipment | 5,580 | 6,573 | 6,603 |
| Intangible assets | 10,152 | 11,104 | 11,282 |
| Financial assets | 1,286 | 1,529 | 1,620 |
| Total non-current assets | 17,018 | 19,206 | 19,505 |
| Inventories | 3,434 | 3,470 | 3,425 |
| Current operating receivables | 6,103 | 6,179 | 5,940 |
| Current interest-bearing receivables | 274 | 88 | 78 |
| Cash and cash equivalents | 578 | 691 | 591 |
| Total current assets | 10,389 | 10,428 | 10,034 |
| Total assets | 27,407 | 29,634 | 29,539 |
| Shareholders' equity, excluding minority share | 11,834 | 11,916 | 12,267 |
| Minority share | 112 | 86 | 94 |
| Total equity | 11,946 | 12,002 | 12,361 |
| Non-current interest-bearing liabilities | 4,706 | 7,221 | 6,516 |
| Other non-current liabilities | 1,208 | 1,627 | 1,559 |
| Total non-current liabilities | 5,914 | 8,848 | 8,075 |
| Interest-bearing current liabilities | 3,361 | 2,398 | 2,529 |
| Other current liabilities | 6,186 | 6,386 | 6,574 |
| Total current liabilities | 9,547 | 8,784 | 9,103 |
| Total equity and liabilities | 27,407 | 29,634 | 29,539 |
| Specification of changes in equity | Sep 30 | Sep 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2010 | 2009 | 2009 |
| Attributable to equity holders of the parent | |||
| Opening balance, January 1 | 12,267 | 10,153 | 10,153 |
| Adjustment opening balance | -9 | - | - |
| Total comprehensive income | -288 | -333 | 18 |
| Dividend | -136 | - | - |
| Reduction of share capital 1) | - | -2,078 | -2,078 |
| Bonus issue 1) | - | 2,078 | 2,078 |
| Rights issue | - | 2,169 | 2,169 |
| Transaction costs 2) | - | -73 | -73 |
| Closing balance | 11,834 | 11,916 | 12,267 |
| Attributable to minority interest | |||
| Opening balance, January 1 | 94 | 85 | 85 |
| Adjustment opening balance | 9 | - | - |
| Total comprehensive income | 10 | 3 | 11 |
| Dividend | -1 | -2 | -2 |
| Closing balance | 112 | 86 | 94 |
| Sum total equity, closing balance | 11,946 | 12,002 | 12,361 |
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 | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Operating activities | ||||||
| Operating profit | 545 | 381 | 1,698 | 650 | 1,890 | 842 |
| Adjustments for items not included in cash flow: | ||||||
| Depreciation, property, plant and equipment | 207 | 226 | 647 | 699 | 876 | 928 |
| Depreciation, intangible assets | 38 | 42 | 112 | 126 | 153 | 167 |
| Impairment losses, property, plant and equipment | 10 | 4 | 11 | 29 | 23 | 41 |
| Impairment losses, intangible assets | 6 | 2 | 15 | 3 | 17 | 5 |
| Provision for restructuring costs | 55 | 26 | 131 | 106 | 334 | 309 |
| Undistributed result from part. in assoc. companies | -8 | -5 | 12 | 16 | 9 | 13 |
| 853 | 676 | 2,626 | 1,629 | 3,302 | 2,305 | |
| Interest received and other financial items | 6 | 4 | 10 | 10 | 15 | 15 |
| Interest paid and other financial items | -32 | -62 | -283 | -477 | -341 | -535 |
| Taxes paid | -62 | -88 | -198 | -148 | -297 | -247 |
| Cash flow from operating activities before changes in | ||||||
| working capital | 765 | 530 | 2,155 | 1,014 | 2,679 | 1,538 |
| Cash flow from changes in working capital: | ||||||
| Change in inventories | -91 | 327 | -408 | 1,063 | -315 | 1,156 |
| Change in operating receivables | -99 | 36 | -1,049 | 777 | -688 | 1,138 |
| Change in operating liabilities | -72 | 39 | 507 | -611 | 445 | -673 |
| Utilization of restructuring provisions | -99 | -183 | -303 | -434 | -401 | -532 |
| Cash flow from operating activities | 404 | 749 | 902 | 1,809 | 1,720 | 2,627 |
| Investing activities | ||||||
| Acquisitions | -18 | -1 | -27 | -50 | -40 | -63 |
| Disposals | 75 | -111 | 2 | -149 | -26 | -177 |
| Capital expenditure, property, plant and equipment | -169 | -130 | -422 | -493 | -599 | -670 |
| Capital expenditure in intangible assets | -10 | -14 | -29 | -51 | -50 | -72 |
| Sale of non-current assets | 27 | 2 | 46 | 21 | 61 | 36 |
| Cash flow from investing activities | -95 | -254 | -430 | -722 | -654 | -946 |
| Financing activities | ||||||
| Rights issue | - | - | - | 2,070 | - | 2,070 |
| Change in interest-bearing investments | 379 | 750 | 502 | 818 | 369 | 685 |
| Change in interest-bearing liabilities | -857 | -1,226 | -816 | -4,008 | -1,398 | -4,590 |
| Dividend paid to shareholders | - | - | -136 | - | -136 | - |
| Dividend paid to minority | - | - | -1 | -2 | -1 | -2 |
| Cash flow from financing activities | -478 | -476 | -451 | -1,122 | -1,166 | -1,837 |
| Cash flow for the period | -169 | 19 | 21 | -35 | -100 | -156 |
| Cash and cash equivalents: | ||||||
| At beginning of the period | 800 | 701 | 591 | 749 | 691 | 749 |
| Exchange rate differences | -53 | -29 | -34 | -23 | -13 | -2 |
| Cash and cash equivalents at end of period | 578 | 691 | 578 | 691 | 578 | 591 |
Group review
| Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Net sales | 6,865 | 6,230 | 20,969 | 19,288 | 27,358 | 25,677 |
| EBITDA | 861 | 681 | 2,614 | 1,613 | 3,293 | 2,292 |
| Operating profit | 600 | 412 | 1,830 | 786 | 2,240 | 1,196 |
| Profit for the period | 396 | 256 | 1,193 | 544 | 1,435 | 786 |
| Net sales | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations | ||||||
| Trelleborg Engineered Systems | 2,640 | 2,740 | 8,060 | 8,470 | 10,759 | 11,169 |
| Trelleborg Automotive | 2,061 | 1,800 | 6,449 | 5,062 | 8,407 | 7,020 |
| Trelleborg Sealing Solutions | 1,477 | 1,104 | 4,349 | 3,509 | 5,513 | 4,673 |
| Trelleborg Wheel Systems | 732 | 630 | 2,252 | 2,362 | 2,881 | 2,991 |
| Eliminations | -45 | -44 | -141 | -115 | -202 | -176 |
| Total | 6,865 | 6,230 | 20,969 | 19,288 | 27,358 | 25,677 |
| EBITDA | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Trelleborg Engineered Systems | 341 | 325 | 966 | 815 | 1,260 | 1,109 |
| Trelleborg Automotive | 191 | 164 | 693 | 237 | 894 | 438 |
| Trelleborg Sealing Solutions | 292 | 149 | 812 | 323 | 986 | 497 |
| Trelleborg Wheel Systems | 101 | 75 | 283 | 311 | 355 | 383 |
| Other companies | -2 | -1 | -8 | -5 | -9 | -6 |
| Group items | -62 | -31 | -132 | -68 | -193 | -129 |
| Total excl. items affecting comparability | 861 | 681 | 2,614 | 1,613 | 3,293 | 2,292 |
| Items affecting comparability | ||||||
| Trelleborg Engineered Systems | -44 | -7 | -85 | -8 | -218 | -141 |
| Trelleborg Automotive | -2 | -1 | -23 | -10 | -32 | -19 |
| Trelleborg Sealing Solutions | -8 | -9 | -12 | -76 | -69 | -133 |
| Trelleborg Wheel Systems | -1 | -9 | -8 | -12 | -12 | -16 |
| Other | - | - | -3 | - | -3 | - |
| Total items affecting comparability | -55 | -26 | -131 | -106 | -334 | -309 |
| Total incl. items affecting comparability | 806 | 655 | 2,483 | 1,507 | 2,959 | 1,983 |
| EBITDA | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
|---|---|---|---|---|---|---|
| % | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Trelleborg Engineered Systems | 12.9 | 11.8 | 12.1 | 9.6 | 11.8 | 9.9 |
| Trelleborg Automotive | 9.1 | 8.9 | 10.6 | 4.6 | 10.5 | 6.1 |
| Trelleborg Sealing Solutions | 19.8 | 13.5 | 18.7 | 9.2 | 17.9 | 10.6 |
| Trelleborg Wheel Systems | 13.8 | 11.9 | 12.6 | 13.2 | 12.3 | 12.8 |
| Total excluding items affecting comparability | 12.5 | 10.8 | 12.4 | 8.3 | 12.0 | 8.9 |
| Including items affecting comparability | ||||||
| Trelleborg Engineered Systems | 11.2 | 11.5 | 11.0 | 9.5 | 9.8 | 8.6 |
| Trelleborg Automotive | 9.0 | 8.8 | 10.2 | 4.4 | 10.1 | 5.9 |
| Trelleborg Sealing Solutions | 19.2 | 12.7 | 18.4 | 7.0 | 16.6 | 7.8 |
| Trelleborg Wheel Systems | 13.6 | 10.5 | 12.2 | 12.7 | 11.9 | 12.3 |
| Total including items affecting comparability | 11.7 | 10.4 | 11.8 | 7.8 | 10.8 | 7.7 |
| Operating profit | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Trelleborg Engineered Systems | 256 | 236 | 698 | 540 | 902 | 744 |
| Trelleborg Automotive | 95 | 65 | 407 | -67 | 508 | 34 |
| Trelleborg Sealing Solutions | 238 | 94 | 660 | 157 | 783 | 280 |
| Trelleborg Wheel Systems | 77 | 52 | 212 | 237 | 258 | 283 |
| Other companies | -2 | -2 | -9 | -7 | -10 | -8 |
| Group items | -64 | -33 | -138 | -74 | -201 | -137 |
| Total excl. items affecting comparability | 600 | 412 | 1,830 | 786 | 2,240 | 1,196 |
| Items affecting comparability | ||||||
| Trelleborg Engineered Systems | -44 | -11 | -85 | -17 | -231 | -163 |
| Trelleborg Automotive | -1 | -2 | -22 | -10 | -35 | -23 |
| Trelleborg Sealing Solutions | -9 | -10 | -14 | -97 | -69 | -152 |
| Trelleborg Wheel Systems | -1 | -8 | -8 | -12 | -12 | -16 |
| Other | - | - | -3 | - | -3 | - |
| Total items affecting comparability | -55 | -31 | -132 | -136 | -350 | -354 |
| Total incl. items affecting comparability | 545 | 381 | 1,698 | 650 | 1,890 | 842 |
| Operating margin, (ROS) | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
|---|---|---|---|---|---|---|
| % | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Continuing operations excluding items affecting comparability | ||||||
| Trelleborg Engineered Systems | 9.7 | 8.5 | 8.7 | 6.3 | 8.5 | 6.6 |
| Trelleborg Automotive | 4.4 | 3.4 | 6.1 | neg | 5.9 | 0.4 |
| Trelleborg Sealing Solutions | 16.1 | 8.6 | 15.2 | 4.5 | 14.2 | 6.0 |
| Trelleborg Wheel Systems | 10.5 | 8.2 | 9.4 | 10.0 | 8.9 | 9.5 |
| Total excl. items affecting comparability | 8.7 | 6.5 | 8.7 | 4.0 | 8.2 | 4.6 |
| Including items affecting comparability | ||||||
| Trelleborg Engineered Systems | 8.0 | 8.2 | 7.7 | 6.1 | 6.3 | 5.2 |
| Trelleborg Automotive | 4.3 | 3.4 | 5.8 | neg | 5.4 | 0.0 |
| Trelleborg Sealing Solutions | 15.5 | 7.7 | 14.9 | 1.7 | 13.0 | 2.8 |
| Trelleborg Wheel Systems | 10.4 | 6.7 | 9.0 | 9.5 | 8.5 | 8.9 |
| Total incl. items affecting comparability | 7.9 | 6.0 | 8.1 | 3.3 | 6.9 | 3.2 |
| Capital employed | Sep 30 | Sep 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2010 | 2009 | 2009 |
| Continuing operations | |||
| Trelleborg Engineered Systems | 6,615 | 6,796 | 6,711 |
| Trelleborg Automotive | 3,855 | 4,150 | 4,162 |
| Trelleborg Sealing Solutions | 6,466 | 7,175 | 7,156 |
| Trelleborg Wheel Systems | 1,823 | 1,818 | 1,835 |
| Other companies | 37 | 48 | 48 |
| Group items | -54 | 52 | 3 |
| Provision for restructing costs and legal costs | -242 | -307 | -416 |
| Total | 18,500 | 19,732 | 19,499 |
| Return on capital employed, (ROCE) | Oct 2009 - | Oct 2008 - | Full year |
|---|---|---|---|
| % | Sep 2010 | Sep 2009 | 2009 |
| Continuing operations excluding items affecting comparability | |||
| Trelleborg Engineered Systems | 13.2 | 9.5 | 10.0 |
| Trelleborg Automotive | 12.4 | neg | 0.8 |
| Trelleborg Sealing Solutions | 11.2 | 3.8 | 3.7 |
| Trelleborg Wheel Systems | 13.7 | 14.3 | 13.9 |
| Total excluding items affecting comparability | 11.3 | 3.9 | 5.5 |
| Including items affecting comparability | |||
| Trelleborg Engineered Systems | 9.9 | 8.8 | 7.9 |
| Trelleborg Automotive | 11.7 | neg | 0.2 |
| Trelleborg Sealing Solutions | 10.3 | 2.5 | 1.7 |
| Trelleborg Wheel Systems | 13.2 | 13.6 | 13.3 |
| Total including items affecting comparability | 9.7 | 0.7 | 4.0 |
| Cash flow report | Capital | Sold non | Change in | Total cash flow | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA 1) | expenditure | current assets | working capital | Jan - Sep | Jan - Sep | Oct 2009 - | |||||
| SEK M | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | Sep 2010 |
| Trelleborg Engineered Systems | 1,010 | 872 | -158 | -195 | 11 | 13 | -567 | 573 | 296 | 1,263 | 731 |
| Trelleborg Automotive | 716 | 263 | -156 | -172 | 2 | 3 | -159 | 163 | 403 | 257 | 597 |
| Trelleborg Sealing Solutions | 824 | 340 | -68 | -62 | 16 | 4 | -94 | 243 | 678 | 525 | 936 |
| Trelleborg Wheel Systems | 292 | 323 | -65 | -113 | 1 | 1 | -145 | 238 | 83 | 449 | 154 |
| Other companies | -8 | -6 | - | - | 6 | - | -1 | -2 | -3 | -8 | -3 |
| Group items | -208 | -163 | -4 | -2 | 10 | - | 16 | 14 | -186 | -151 | -258 |
| Operating cash flow | 2,626 | 1,629 | -451 | -544 | 46 | 21 | -950 | 1,229 | 1,271 | 2,335 | 2,157 |
| Utilization of restructuring provisions | -303 | -434 | -401 | ||||||||
| Dividend paid to minority | -1 | -2 | -1 | ||||||||
| Financial items | -273 | -467 | -326 | ||||||||
| Paid tax | -198 | -148 | -297 | ||||||||
| Free cash flow | 496 | 1,284 | 1,132 | ||||||||
| Acquisitions | -27 | -50 | -40 | ||||||||
| Disposals | 2 | -149 | -26 | ||||||||
| Dividend paid to shareholders | -136 | - | -136 | ||||||||
| Rights issue | - | 2,070 | - | ||||||||
| Sum net cash flow | 335 | 3,155 | 930 |
1) Excluding undistributed result from associated companies and allocated group expenses
| Acquisitions | Jan - Sep | Jan - Sep |
|---|---|---|
| SEK M | 2010 | 2009 |
| Purchase price | 27 | 24 |
| Acquisition expenses 1) | - | 26 |
| Net realizable value of acquired assets | 5 | 24 |
| Goodwill | 22 | 26 |
| Acquired assets and liabilities: | ||
| Property, plant and equipment | 3 | 19 |
| Intangible assets | 2 | - |
| Associated companies | - | 2 |
| Operating liabilities | - | 3 |
| Total | 5 | 24 |
1) Acquisitions costs relating to previous years acquisitions.
Income Statements
| Group | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations | |||||||||
| Net sales | 6,865 | 7,430 | 6,674 | 6,389 | 6,230 | 6,500 | 6,558 | 7,048 | 7,139 |
| Cost of goods sold | -5,039 | -5,366 | -4,898 | -4,740 | -4,611 | -4,927 | -5,036 | -5,392 | -5,318 |
| Gross profit | 1,826 | 2,064 | 1,776 | 1,649 | 1,619 | 1,573 | 1,522 | 1,656 | 1,821 |
| Selling expenses | -536 | -572 | -546 | -589 | -531 | -584 | -625 | -679 | -564 |
| Administrative expenses | -584 | -635 | -598 | -631 | -555 | -614 | -662 | -741 | -664 |
| Research and development costs | -141 | -150 | -146 | -142 | -136 | -138 | -154 | -142 | -135 |
| Other operating income/costs | -24 | -35 | -5 | -98 | -21 | -49 | -3 | -594 | -58 |
| Share of profit or loss in assoc. companies | 4 | 3 | -3 | 3 | 5 | 0 | 3 | 4 | 5 |
| Operating profit | 545 | 675 | 478 | 192 | 381 | 188 | 81 | -496 | 405 |
| Financial income and expenses | -58 | -50 | -69 | -70 | -85 | -106 | -131 | -143 | -121 |
| Profit before tax | 487 | 625 | 409 | 122 | 296 | 82 | -50 | -639 | 284 |
| Tax | -132 | -185 | -110 | -33 | -61 | 4 | 175 | 81 | -57 |
| Profit for the period | 355 | 440 | 299 | 89 | 235 | 86 | 125 | -558 | 227 |
| Discontinued operations | |||||||||
| Net sales | 0 | 384 | 380 | 367 | 329 | 367 | 319 | 295 | 388 |
| Operating profit | 0 | -192 | 23 | 5 | -10 | -29 | -35 | -304 | -142 |
| Profit before tax | 0 | -191 | 22 | 6 | -8 | -36 | -43 | -314 | -151 |
| Profit for the period | 0 | -166 | -7 | 3 | -19 | -40 | -60 | -284 | -125 |
| Group, total | |||||||||
| Net sales | 6,865 | 7,814 | 7,054 | 6,756 | 6,559 | 6,867 | 6,877 | 7,343 | 7,527 |
| Operating profit | 545 | 483 | 501 | 197 | 371 | 159 | 46 | -800 | 263 |
| Pofit before tax | 487 | 434 | 431 | 128 | 288 | 46 | -93 | -953 | 133 |
| Profit for the period | 355 | 274 | 292 | 92 | 216 | 46 | 65 | -842 | 102 |
| - attrib. to equity holders of the parent | 351 | 269 | 285 | 87 | 213 | 44 | 65 | -845 | 102 |
| - attributable to minority interest | 4 | 5 | 7 | 5 | 3 | 2 | 0 | 3 | 0 |
| Earnings per share | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 |
| SEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations | 1.30 0.00 |
1.60 -0.60 |
1.10 -0.05 |
0.30 0.05 |
0.90 -0.05 |
0.35 -0.20 |
0.65 -0.30 |
-2.85 -1.45 |
1.15 -0.65 |
| Discontinued operations | |||||||||
| Group, total | 1.30 | 1.00 | 1.05 | 0.35 | 0.85 | 0.15 | 0.35 | -4.30 | 0.50 |
Key ratios per quarter - Group
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations | |||||||||
| Net sales | 6,865 | 7,430 | 6,674 | 6,389 | 6,230 | 6,500 | 6,558 | 7,048 | 7,139 |
| Operating profit | 545 | 675 | 478 | 192 | 381 | 188 | 81 | -496 | 405 |
| Profit for the period | 355 | 440 | 299 | 89 | 235 | 86 | 125 | -558 | 227 |
| Operating cash flow | 439 | 818 | 14 | 886 | 936 | 958 | 441 | 603 | 656 |
| Items aff. comparability in operating profit | -55 | -50 | -27 | -218 | -31 | -91 | -14 | -579 | -104 |
| Operating profit, excl. items aff. comp. | 600 | 725 | 505 | 410 | 412 | 279 | 95 | 83 | 509 |
| EBITDA, %, excl. items aff. comparability | 12.5 | 13.3 | 11.5 | 10.6 | 10.8 | 8.6 | 5.7 | 5.2 | 10.6 |
Net sales by business area
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations | |||||||||
| Trelleborg Engineered Systems | 2,640 | 2,872 | 2,548 | 2,699 | 2,740 | 2,868 | 2,862 | 3,244 | 2,957 |
| Trelleborg Automotive | 2,061 | 2,268 | 2,120 | 1,958 | 1,800 | 1,755 | 1,507 | 1,581 | 1,876 |
| Trelleborg Sealing Solutions | 1,477 | 1,522 | 1,350 | 1,164 | 1,104 | 1,129 | 1,276 | 1,361 | 1,480 |
| Trelleborg Wheel Systems | 732 | 795 | 725 | 629 | 630 | 782 | 950 | 903 | 866 |
| Eliminations | -45 | -27 | -69 | -61 | -44 | -34 | -37 | -41 | -40 |
| Total | 6,865 | 7,430 | 6,674 | 6,389 | 6,230 | 6,500 | 6,558 | 7,048 | 7,139 |
EBITDA % by business area
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations excluding items affecting comparability | |||||||||
| Trelleborg Engineered Systems | 12.9 | 13.5 | 9.6 | 10.9 | 11.8 | 9.8 | 7.2 | 8.7 | 11.5 |
| Trelleborg Automotive | 9.1 | 11.7 | 10.8 | 10.1 | 8.9 | 6.5 | neg | neg | 3.9 |
| Trelleborg Sealing Solutions | 19.8 | 19.7 | 16.3 | 15.0 | 13.5 | 6.8 | 7.7 | 14.0 | 18.3 |
| Trelleborg Wheel Systems | 13.8 | 10.3 | 13.8 | 11.3 | 11.9 | 13.8 | 13.5 | 9.4 | 12.0 |
| Total | 12.5 | 13.3 | 11.5 | 10.6 | 10.8 | 8.6 | 5.7 | 5.2 | 10.6 |
Operating profit by business area
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| MSEK | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 |
| Continuing operations excluding items affecting comparability | |||||||||
| Trelleborg Engineered Systems | 256 | 294 | 148 | 204 | 236 | 187 | 117 | 192 | 260 |
| Trelleborg Automotive | 95 | 175 | 137 | 101 | 65 | 11 | -143 | -258 | -24 |
| Trelleborg Sealing Solutions | 238 | 251 | 171 | 123 | 94 | 22 | 41 | 138 | 221 |
| Trelleborg Wheel Systems | 77 | 59 | 76 | 46 | 52 | 83 | 102 | 60 | 84 |
| Other companies | -2 | -4 | -3 | -1 | -2 | -2 | -3 | -2 | -1 |
| Group items | -64 | -50 | -24 | -63 | -33 | -22 | -19 | -47 | -31 |
| Total | 600 | 725 | 505 | 410 | 412 | 279 | 95 | 83 | 509 |
Parent Company
| Income Statements | ||||||
|---|---|---|---|---|---|---|
| Parent company | Jul - Sep | Jul - Sep | Jan - Sep | Jan - Sep | Oct 2009 - | Full year |
| SEK M | 2010 | 2009 | 2010 | 2009 | Sep 2010 | 2009 |
| Administrative expenses | -80 | -66 | -238 | -219 | -408 | -389 |
| Other operating income | 166 | 16 | 193 | 191 | 291 | 289 |
| Operating profit | 86 | -50 | -45 | -28 | -117 | -100 |
| Financial income and expenses | 153 | 59 | 980 | -128 | 592 | -516 |
| Profit before tax | 239 | 9 | 935 | -156 | 475 | -616 |
| Tax | 6 | 38 | 90 | 104 | 130 | 144 |
| Profit for the period | 245 | 47 | 1,025 | -52 | 605 | -472 |
| Balance Sheets | |||
|---|---|---|---|
| Parent company | Sep 30 | Sep 30 | Dec 31 |
| SEK M | 2010 | 2009 | 2009 |
| Property, plant and equipment | 27 | 29 | 29 |
| Intangible assets | 10 | 10 | 9 |
| Financial assets | 34,631 | 33,824 | 34,244 |
| Total non-current assets | 34,668 | 33,863 | 34,282 |
| Current operating receivables | 44 | 91 | 52 |
| Current interest-bearing receivables | 943 | 1,562 | 1,665 |
| Cash and cash equivalents | 2 | - | - |
| Total current assets | 989 | 1,653 | 1,717 |
| Total assets | 35,657 | 35,516 | 35,999 |
| Shareholders' equity | 11,887 | 10,709 | 11,005 |
| Total equity | 11,887 | 10,709 | 11,005 |
| Non-current interest-bearing liabilities | 52 | 51 | 51 |
| Other non-current liabilities | 3 | 3 | 6 |
| Total non-current liabilities | 55 | 54 | 57 |
| Interest-bearing current liabilities | 23,631 | 24,689 | 24,845 |
| Other current liabilities | 84 | 64 | 92 |
| Total current liabilities | 23,715 | 24,753 | 24,937 |
| Total equity and liabilities | 35,657 | 35,516 | 35,999 |
Financial definitions
Return on shareholders' equity Return on equity
Profit for the period, attributable to equity holders of the parent as a percentage of average shareholders' equity, excluding minority interests.
Return on capital employed (ROCE), % Return on capital employed (ROCE), %
EBIT divided by the average capital employed.
EBITDA
Operating profit excluding depreciation and amortization of PPE and intangible assets.
EBITDA, % EBITDA, %
EBITDA excluding profit from participation in associated companies as a percentage of net sales.
Free cash flow Free flow
Operating cash flow and cash flow from financial items and tax and the effect of restructuring measures on cash flow.
Net debt Net debt
Interest-bearing liabilities less interest-bearing assets and cash and cash equivalents.
Operating cash flow Operating
EBITDA excluding undistributed participation in the earnings of associated companies, investments and changes in working capital but excluding cash flow pertaining to restructuring.
Operating cash flow/EBIT Operating flow/EBIT
Operating cash flow as a percentage of operating profit.
Earnings per share Earnings share
Profit for the period, attributable to equity holders of the parent divided by the average number of shares outstanding.
Operating margin (ROS), % Operating
Operating profit excluding participation in the earnings of associated companies as a percentage of net sales.
Operating profit Operating
Operating profit according to profit and loss.
Debt/equity ratio, % Debt/equity %
Net debt divided by total equity.
Equity/assets ratio, % Equity/assets
Total equity in relation to total assets.
Capital employed Capital employed
Total assets less interest-bearing financial assets and noninterest-bearing operating liabilities (including pension liabilities) and excluding tax assets and tax liabilities.
Invitation to a presentation and telephone conference on October 28 at 9:30 a.m.
A presentation and telephone conference will be held on October 28 at 9:30 a.m. The presentation will be held at Operaterrassen in Stockholm, Sweden. To participate in the telephone conference, call +46 (0)8-5051 3791 or +44 20 7806 1966 and state the code 9393584 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 (Stockholm) November 24 Year-end Report 2010 February 15, 2011 Interim report January-March 2011 April 20, 2011 Annual General Meeting (Trelleborg) April 20, 2011
For further information, please contact: Investors/analysts
Conny Torstensson, VP Investor Relations Tel: +46 (0)410 – 670 70 Mobil: +46 (0)734 – 08 70 70 E-mail: [email protected]
Media
Mikael Sjöblom, VP Media Relations Tel: +46 (0)410 – 670 15 Mobil: +46 (0)733 – 74 70 15 E-mail: [email protected]
Annual Reports, the stakeholder magazine T-TIME and other information on the Trelleborg Group can be ordered from: Corporate Communications, by telephone on +46 (0)410 – 670 09, or can be downloaded from the Group's website: www.trelleborg.com
Trelleborg AB (publ) Corp. Reg. No. 556006-3421 PO Box 153, SE-231 22 Trelleborg Sweden Tel: +46 (0)410-670 00. Fax: +46 (0)410-427 63
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 28, 2010 at 7:45 a.m.