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Trelleborg — Interim / Quarterly Report 2012
Jul 19, 2012
2985_ir_2012-07-19_17c1f193-9465-4326-9763-095acd31f8d2.pdf
Interim / Quarterly Report
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Second quarter 2012
"Trelleborg reports a strong quarter. The margins and earnings in the quarter, was Trelleborg's best to date. Furthermore, cash flow was strong. Sales growth was favorable in North America and in parts of Asia, while the trend in Europe was mixed. Organic growth was overall slightly negative, which is due to lower demand in parts of Europe. We continue to invest in emerging markets like Brazil, India and China to enhance our geographic balance, which to some extent continues to burden the result and increases the investment level during the quarter. Trelleborg have together with Freudenberg formed a joint venture within antivibration solutions for light and heavy vehicles, thus creating a global leader in this segment. The joint venture, TrelleborgVibracoustic, is since the beginning of the third quarter operational. The market outlook gives cause for caution. We follow of course the developments closely and are well prepared to manage uncertainties." Continuing operations excluding Trelleborg Automotive, which was separated from other business areas prior to the formation of the joint venture in the accounts: Net sales during the second quarter of 2012 increased to SEK 5,663 M (5,542). Organic sales decreased 2 percent (increase: 12). Operating profit amounted to SEK 875 M (651). Items affecting comparability amounted to income of SEK 171 M (expense: 28). Operating profit excluding items affecting comparability totaled SEK 704 M (679). The EBITDA margin, excluding items affecting comparability, was 15.6 percent (15.1). Net profit amounted to SEK 712 M (433) and earnings per share increased to SEK 2.60 (1.60). Earnings per share excluding items affecting comparability were SEK 1.95 (1.65). The operating cash flow was SEK 606 M (378). Free cash flow was SEK 646 M (193). Continuing operations including Trelleborg Automotive: Net sales amounted to SEK 7,517 M (7,361). Operating profit excluding items affecting comparability amounted to SEK 813 M (730). The Group in total: Consolidated net sales totaled SEK 7,533 M (7,583). Operating profit amounted to SEK 1,115 M (704). Market outlook for the third quarter 2012. Demand is expected to be somewhat lower than in the second quarter of 2012, adjusted for seasonal variations. Market outlook for the third quarter 2012 President and CEO Peter Nilsson Net sales continuing operations SEK 5,663 M Operating profit excl. items affecting comparability SEK 704 M Net sales incl. Trelleborg Automotive SEK 7 517 M Operating profit incl. Trelleborg Automotive excl. items affecting comparability SEK 813 M
| Key ratios, continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Net sales | 5,663 | 5,542 | 11,436 | 10,844 | 21,832 | 21,240 |
| Operating profit 1) | 875 | 651 | 1,527 | 1,224 | 2,417 | 2,114 |
| Profit before tax | 841 | 611 | 1,449 | 1,157 | 2,243 | 1,951 |
| Net profit | 712 | 433 | 1,152 | 812 | 1,691 | 1,351 |
| - equity holders of the parent | 709 | 432 | 1,146 | 809 | 1,679 | 1,342 |
| - non-controlling interest | 3 | 1 | 6 | 3 | 12 | 9 |
| Earnings per share, SEK | 2.60 | 1.60 | 4.20 | 3.00 | 6.15 | 4.95 |
| Average number of employees within the Group, of whom | 19,716 | 20,425 | 20,274 | |||
| - women | 5,028 | 5,084 | 5,029 | |||
| - men | 14,688 | 15,341 | 15,245 |
Continuing operations April - June 2012
1) In the items affecting comparability in 2012, amounting to net SEK +171 M (SEK -28 M), an additional purchase payment from sales of land in Stockholm is included amounting to +203 MSEK.
Organic sales declined 2 percent (increase: 12)
Net sales. The Trelleborg Group's net sales for the second quarter of 2012 for continuing operations totaled SEK 5,663 M (5,542), an increase of 2 percent (6). Organic sales declined 2 percent (increase: 12). The effects of structural changes were 0 percent (4) while exchange-rate effects were a positive 4 percent (neg: 10).
| Change in net sales, continuing operations | Apr - Jun | Apr - Jun |
|---|---|---|
| % | 2012 | 2011 |
| Organic sales | -2 | +12 |
| Structural changes | 0 | + 4 |
| Exchange-rate effects | +4 | - 10 |
| Total | +2 | +6 |
The Group's sales to the segments offshore oil/gas, agriculture and aerospace were higher compared with the second quarter of 2011. Sales to the general industry segment were lower than in the year-earlier period. Sales to other segments were on a par with the second quarter of 2011. Sales to all segments were on a par with the first quarter of 2012.
Operating profit rose to SEK 875 M (651)
Earnings. Operating profit for the quarter rose to SEK 875 M (651). Currency translation effects had a positive impact on operating profit of approximately SEK 18 M compared with the corresponding period in 2011. Profit before tax increased to SEK 841 M (611).
Net profit amounted to SEK 712 M (433). The tax rate was 15 percent (29). The tax rate was low, mainly because of a tax advantageous additional purchase consideration attributable to the sale of a property in Stockholm. Earnings per share were SEK 2.60 (1.60).
Operating profit, excluding items affecting comparability, increased to SEK 704 M (679). Items affecting comparability include restructuring costs within the previously announced scope for structural projects in the amount of SEK 32 M (cost: 28) and an additional purchase consideration attributable to the sale of a property in Stockholm in the amount of SEK 203 M (-). The operating margin was 12.4 percent (12.2). Operating profit before depreciation and amortization (EBITDA) rose to SEK 886 M (836). The EBITDA margin was 15.6 percent (15.1). Earnings per share totaled SEK 1.95 (1.65).
EBITDA margin amounted to 15.6 percent (15.1)
| Operating key ratios, continuing operations excl. items affecting comparability SEK M |
Apr - Jun 2012 |
Apr - Jun 2011 |
Jan - Jun 2012 |
Jan - Jun 2011 |
Jul 2011 - Jun 2012 |
Full year 2011 |
|---|---|---|---|---|---|---|
| Operating profit | 704 | 679 | 1,375 | 1,253 | 2,374 | 2,252 |
| Operating margin (ROS), % | 12.4 | 12.2 | 12.0 | 11.6 | 10.9 | 10.6 |
| EBITDA, % | 15.6 | 15.1 | 15.1 | 14.4 | 14.0 | 13.7 |
| Earnings per share, SEK | 1.95 | 1.65 | 3.60 | 3.05 | 5.90 | 5.35 |
Return. The return on capital employed, excluding items affecting comparability, for the past 12-month period was 13.8 percent (full-year 2011: 13.6).
| Continuing operations |
Excl. items affecting comparability |
|||||
|---|---|---|---|---|---|---|
| Jul 2011 - | Full year | Jul 2011 - | Full year | |||
| % | Jun 2012 | 2011 | Jun 2012 | 2011 | ||
| Return on capital employed, ROCE | 14.1 | 12.9 | 13.8 | 13.6 |
Free cash flow was SEK 646 M (193)
Cash flow. Operating cash flow for the period amounted to SEK 606 M (378). Cash flow was positively impacted by favorable earnings generation and efficient management of working capital. The investment level during the quarter amounted to SEK 243 M (147). Free cash flow was SEK 646 M (193).
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Operating cash flow | 606 | 378 | 529 | 346 | 1,734 | 1,551 |
| Utilization of restructuring provisions/sale of property | 174 | -68 | 137 | -93 | 7 | -223 |
| Dividend - non-controlling interest | -5 | -2 | -5 | -2 | -6 | -3 |
| Financial items | -8 | -11 | -98 | -199 | -137 | -238 |
| Paid tax | -121 | -104 | -216 | -199 | -422 | -405 |
| Free cash flow | 646 | 193 | 347 | -147 | 1,176 | 682 |
Continuing operations including Trelleborg Automotive April - June 2012
Net sales. Net sales for continuing operations including Trelleborg Automotive amounted to SEK 7,517 M (7,361). Operating profit excluding items affecting comparability amounted to SEK 813 M (730).
| Operating key ratios, continuing operations excl. items affecting comparability incl |
||||||
|---|---|---|---|---|---|---|
| Trelleborg Automotive | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Net sales | 7,517 | 7,361 | 15,159 | 14,366 | 29,096 | 28,303 |
| Operating profit | 813 | 730 | 1,574 | 1,364 | 2,772 | 2,562 |
| Operating margin (ROS), % | 10.8 | 9.9 | 10.3 | 9.5 | 9.5 | 9.0 |
| EBITDA, % | 13.9 | 12.8 | 13.4 | 12.5 | 12.6 | 12.1 |
| Earnings per share, SEK | 2.25 | 1.80 | 4.10 | 3.30 | 6.90 | 6.10 |
Continuing operations January - June 2012
Net sales. The Trelleborg Group's net sales for continuing operations for the first six months of 2012 totaled SEK 11,436 M (10,844), up 5 percent compared with 2011. Organic sales increased 2 percent (15). Structural changes represented a positive impact of 2 percent (3) while exchange rates had a positive impact of 1 percent (neg: 10).
Earnings. Operating profit for the first six months of 2012 amounted to SEK 1,527 M (1,224). Items affecting comparability amounted to income of SEK 152 M (expense: 29). Profit before tax totaled SEK 1,449 M (1,157). Net profit was SEK 1,152 M (812). Earnings per share were SEK 4.20 (3.00).
Cash flow. Operating cash flow during the first six months of 2012 was SEK 529 M (346).
Capital employed. At the end of the period, capital employed totaled SEK 17,493 M, compared with SEK 16,470 M the year-earlier period.
The Group in total January - June 2012
Net sales. Consolidated net sales during the first six months of 2012 totaled SEK 15,306 M (14,853), up 3 percent compared to 2011.
Earnings. Operating profit for the first six months of 2012 amounted to SEK 1,859 M (1,609). In addition to above mentioned items affecting comparability, the result also include a capital gain of approximately SEK 130 M due to the divestment of protective products operation. The financial net expense was SEK 114 M (expense: 92), corresponding to an average interest rate of 3.4 percent (2.8). Profit before tax increased to SEK 1,745 M (1,517). Net profit amounted to SEK 1,402 M (1,152). Earnings per share were SEK 5.15 (4.20).
As from the quarterly report for the period July-September 2012, Trelleborg's participation in TrelleborgVibracoustic will be recognized using the equity method. The Group's share of profits in the company will then be recognized in profit or loss under the item "Share of profit or loss in associated companies before tax" and included in operating profit and on the line "Tax on share of profit or loss in associated companies", which is recognized as a tax expense.
Net debt. Compared with December 2011, net debt grew by SEK 266 M to SEK -6,691 M (-7,070). In the second quarter, dividends to shareholders were paid totaling SEK 678 M (474).
Debt/equity ratio was 48 percent (55)
The debt/equity ratio was 48 percent (55). Net debt in relation to EBITDA for continuing operations excluding items affecting comparability but including Trelleborg Automotive was 1.8 (2.1).
| Change in net debt | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Full year |
|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | 2011 |
| Net debt, opening balance | -6,618 | -6,388 | -6,425 | -6,409 | -6,409 |
| Net cash flow for the period | 56 | -510 | -286 | -940 | -67 |
| Disposals | - | -41 | - | 98 | 98 |
| Exchange rate differences | -129 | -131 | 20 | 181 | -47 |
| Net debt, closing balance | -6,691 | -7,070 | -6,691 | -7,070 | -6,425 |
| Debt/equity ratio, % | 48 | 55 | 48 | ||
| Net Debt/EBITDA continuing operations excl items aff comp, R12 | 1.8 | 2.1 | 1.9 |
Shareholders' equity. Shareholders' equity at the close of the period amounted to SEK 13,786 M (12,629), excluding non-controlling interests. Equity per share amounted to SEK 50.85 (46.60). The equity/asset ratio was 47 percent (44).
Return on shareholders' equity for the last twelve months was 15.6 percent (14.0).
Important events during the quarter
Structural changes April - June 2012
Joint venture in antivibration solutions. Trelleborg and Freudenberg have formed the joint venture in antivibration solutions for light and heavy vehicles, TrelleborgVibracoustic. In May, relevant competition authorities approved the transaction.
The joint-venture company comprises Trelleborg's former business area Trelleborg Automotive and Freudenberg's operations in antivibration solutions, Vibracoustic. Effective the third quarter of 2012, the Trelleborg Automotive business area will no longer be part of the Trelleborg Group's business-area structure since the operation will be included in the joint venture.
Completed divestment of protective products operation (recognized as a discontinued operation)
Joint venture in
antivibration solutions, TrelleborgVibracoustic
Divestment of protective products operation. Trelleborg completed the divestment of an operation that produces high-technology protective products for professional users. The operation was part of Trelleborg Engineered Systems. The buyer is Ansell Limited. The divestment is a further step in the Trelleborg Group's strategy of focusing on selected segments. The divested operation had sales of approximately SEK 170 M during 2011. The purchase consideration amounted to approximately SEK 210 M and will lead to a capital gain in accounting terms of approximately SEK 130 M after tax. The parties have also reached a long-term agreement covering the supply of polymer-coated fabrics from Trelleborg.
Updated historical sales and results figures. As part of Trelleborg's preparations of the financial reporting for TrelleborgVibracoustic, previously reported quarterly data for the Trelleborg Automotive business unit has been separated from the data for the other business areas. Information about updated historical sales and results figures was published in a press release on June 25, 2012. In conjunction with this, the divested protective products operation, the French light-vehicle component operation and the gas spring Updated historical sales and results figures
operation for passenger cars were transferred to "Discontinued operations" in the financial statements.
Additional purchase consideration for the sale of property
Sale of property in Stockholm. At the beginning of 2007, Trelleborg entered into an agreement with Skanska for the sale of land in Södra Hammarbyhamnen, Stockholm, Sweden. A transfer payment of just over SEK 100 M was recognized in the first quarter of 2007. Due to the detailed development plan now coming into effect, an additional purchase consideration of SEK 203 M has been determined. The additional proceeds had a positive impact on cash flow and generated a capital gain after tax of SEK 203 M for Trelleborg.
Events after the close of the period
After the end of the period, on July 3, 2012, Trelleborg and Freudenberg announced that they had completed the joint venture in antivibration solutions for light and heavy vehicles (see page 5).
Risk management
Risk/risk management at Trelleborg. Trelleborg focuses continuously on identifying, evaluating and managing risks arising in the Group's companies, business areas, business units and processes. Trelleborg has an Enterprise Risk Management process (ERM process) which aims to provide a Groupwide overview of Trelleborg's risks, deliver a basis for risk management decisions and enable assessment of the risks and of how they are managed.
The principal risks and uncertainties currently faced by the Group relate to the economy's effect on demand, supply and price movements of raw materials and components, structural programs and financial business environment risks.
For further information regarding the Group's risks, risk exposure and risk management, refer to the Trelleborg Annual Report and www.trelleborg.com.
The Group's market outlook
Market outlook for the third quarter of 2012. Demand is expected to be somewhat lower than in the second quarter of 2012, adjusted for seasonal variations.
Outlook from the interim report published on April 19, 2012: Market outlook for the second quarter of 2012. Demand is expected to be in line with the first quarter of 2012, adjusted for seasonal variations.
Trelleborg, July 19, 2012 Board of Directors of Trelleborg AB (publ) _____________________________________________________________
This report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable rules of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim Reports. Unless otherwise stated, the accounting policies applied by the Group and Parent Company correspond to the accounting policies applied in the preparation of the most recent annual report.
This report has been subject to special review by the company's auditors (refer to page 20).
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Excluding items affecting comparability | ||||||
| Net sales | 1,052 | 1,006 | 2,180 | 1,956 | 4,087 | 3,863 |
| Operating profit | 133 | 108 | 289 | 204 | 486 | 401 |
| Operating margin (ROS), % | 12.6 | 10.8 | 13.2 | 10.4 | 11.9 | 10.4 |
| EBITDA margin, % | 15.0 | 13.1 | 15.5 | 12.6 | 14.2 | 12.7 |
| Operating cash flow | 86 | 111 | -39 | -42 | 188 | 185 |
| Including items affecting comparability | ||||||
| Operating profit | 133 | 108 | 289 | 204 | 486 | 401 |
| ROS, % | 12.6 | 10.8 | 13.2 | 10.4 | 11.9 | 10.4 |
Trelleborg Wheel Systems
Additional key ratios on pages 14 - 17
Market trend. Underlying demand for OEMs was stable, and in North America growing. For the aftermarket, underlying demand was weakening in Europe but continued to be favorable in some sub segments.
Net sales. Net sales during the quarter rose 5 percent compared with the year-earlier period. Organic sales increased 4 percent, structural changes represented 0 percent and exchange-rate effects were 1 percent.
Operating profit and cash flow. Operating profit increased compared with the year-earlier period. The operating margin was impacted by a favorable product mix and high efficiency.
Operating cash flow was charged mainly with increased tied-up working capital, partly driven by volume increases and higher investments.
Other. The business area's new production facility in Xingtai, Hebei province, China, was officially inaugurated during the quarter. The facility manufacturers tires, primarily for the agricultural sector, to the Chinese market as well as for export.
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Excluding items affecting comparability | ||||||
| Net sales | 1,944 | 1,905 | 3,917 | 3,718 | 7,487 | 7,288 |
| Operating profit | 464 | 420 | 893 | 772 | 1,616 | 1,495 |
| Operating margin (ROS), % | 23.8 | 22.0 | 22.8 | 20.8 | 21.6 | 20.5 |
| EBITDA margin, % | 27.1 | 24.6 | 25.7 | 23.3 | 24.6 | 23.3 |
| Operating cash flow | 437 | 354 | 701 | 556 | 1,506 | 1,361 |
| Including items affecting comparability | ||||||
| Operating profit | 463 | 414 | 889 | 763 | 1,601 | 1,475 |
| ROS, % | 23.8 | 21.7 | 22.7 | 20.5 | 21.4 | 20.2 |
Trelleborg Sealing Solutions
Additional key ratios on pages 14 - 17
Historical figures updated in accordance with pressrelease dated June 25, 2012, see page 5.
Market trend. The underlying demand trend in total for the general industry segment was weakening, especially in parts of Europe. However, in North America and in Asia, the demand trend was positive. Demand in the aerospace segment was especially favorable.
Net sales. Net sales for the quarter rose 2 percent compared with the yearearlier period. Organic sales fell 1 percent, effects of structural changes represented 0 percent and exchange-rate effects were a positive 3 percent.
Operating profit and cash flow. Operating profit improved compared with the year-earlier period as a result of a favorable product mix, effective cost control and good capacity utilization.
Operating cash flow was strong due to favorable earnings generation and continued efficient management of working capital.
Other. The business area's newly built facility in Bangalore, India, where sealing solutions are developed, manufactured and supplied, was officially inaugurated during the quarter.
The establishment of a production facility in North America that will develop and in clean rooms manufacture products with high cleanliness requirements, and the expansion for the same manufacturing in Europe, are continuing according to plans. The facilities create conditions for growth, among others in the segment of life sciences.
| Continuing operations | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Excluding items affecting comparability | ||||||
| Net sales | 2,765 | 2,763 | 5,545 | 5,330 | 10,605 | 10,390 |
| Operating profit | 178 | 241 | 338 | 440 | 603 | 705 |
| Operating margin (ROS), % | 6.4 | 8.7 | 6.1 | 8.3 | 5.7 | 6.8 |
| EBITDA margin, % | 9.6 | 11.6 | 9.3 | 11.4 | 9.0 | 10.0 |
| Operating cash flow | 199 | 85 | 56 | 24 | 379 | 347 |
| Including items affecting comparability | ||||||
| Operating profit | 156 | 231 | 310 | 433 | 494 | 617 |
| ROS, % | 5.6 | 8.4 | 5.6 | 8.1 | 4.7 | 5.9 |
Trelleborg Engineered Systems
Additional key ratios on pages 14 - 17
Historical figures updated in accordance with pressrelease dated June 25, 2012, see page 5.
Market trend. Underlying markets for project-related operations such as offshore oil/gas and infrastructure were healthy. The general industry segment, particularly in parts of Europe, noted a slightly declining trend in demand.
Net sales. Net sales for the quarter remained unchanged compared with the year-earlier period. Organic sales fell 4 percent, effects of structural changes represented a positive 1 percent and exchange-rate effects were a positive 3 percent.
Operating profit and cash flow. Operating profit was lower compared with the year-earlier period primarily due to a less favorable product mix and continued significant start-up costs in Brazil, where growth initiatives are made within offshore oil/gas and polymer-coated fabrics for advanced industrial applications.
Operating cash flow was higher compared with the year-earlier period, which was primarily attributable to the more efficient management of working capital.
Other. The business area has during the quarter received a contract to supply the largest marine fender solution project for Trelleborg in history. The contract is for a harbor project in Doha in Qatar and has an order value of USD 24.5 M. The first deliveries are expected to begin at the end of 2012 and the project is expected to continue until the start of 2015.
The expansion of the business area's operations in Brazil is proceeding. A facility that primarily produces a wide range of underwater application products for offshore oil/gas will be officially inaugurated in the second half of 2012, as will a facility for specially designed oil hoses for surface and deep-sea applications.
In parallel, in Brazil, a facility is being expanded for the production of polymer-coated fabrics for advanced industrial applications, primarily printing blankets. This facility will also be officially inaugurated in the second half of 2012.
The divestment of the protective products operation was completed during the period (see page 5).
| Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Excluding items affecting comparability | ||||||
| Net sales | 1,865 | 1,827 | 3,755 | 3,539 | 7,328 | 7,112 |
| Operating profit | 109 | 51 | 199 | 112 | 397 | 310 |
| Operating margin (ROS), % | 5.6 | 2.6 | 5.1 | 3.0 | 5.2 | 4.2 |
| EBITDA margin, % | 8.6 | 5.8 | 8.0 | 6.4 | 8.4 | 7.5 |
| Operating cash flow 2) | 70 | 73 | 1 | -104 | 164 | 59 |
| Including items affecting comparability | ||||||
| Operating profit | 109 | 34 | 190 | 87 | 347 | 244 |
| ROS, % | 5.6 | 1.7 | 4.9 | 2.3 | 4.5 | 3.3 |
Trelleborg Automotive1)
2) Adjusted as preparation for establishment of the joint venture, TrelleborgVibracoustic.
Market trend. Global production and sales of light vehicles remained stable during the quarter, with favorable growth in North America and large parts of Asia. In Europe, the trend in total was negative, but positive in eastern parts of Europe. In South America production and sales were lower, especially for heavy vehicles.
Net sales. Net sales during the quarter rose 2 percent compared with the year-earlier period. The business area continued to progressed better than comparable relevant underlying markets. Organic sales increased 3 percent, effects of structural changes represented 0 percent and exchange-rate effects were negative 1 percent.
Operating profit and cash flow. The operating profit and operating margin in the quarter were higher than in the corresponding period in 2011 as a result of increased volumes and a favorable customer mix. In the comparable year-earlier period, operating profit was adversely affected by impairment losses on inventories and other assets, of historical nature.
Other. Trelleborg and Freudenberg have completed the formation of the joint venture in antivibration solutions for light and heavy vehicles, TrelleborgVibracoustic. In May, relevant competition authorities approved the transaction. After the end of the period, on July 3, 2012, the parties announced that they had completed the deal (see page 5 and 6).
Effective from the third quarter of 2012, the Trelleborg Automotive business area will be included in the joint venture and no longer be part of the Trelleborg Group's business-area structure. Trelleborg's participation in TrelleborgVibracoustic will then be recognized using the equity method (see page 4).
1) As part of Trelleborg's preparations of the financial reporting for TrelleborgVibracoustic, previously reported quarterly data for the Trelleborg Automotive business unit has been separated from the data for the other business areas in this interim report. Information about updated historical sales and results figures was published in a press release on June 25, 2012.
Financial statements
Income Statements
| Group | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations | ||||||
| Net sales | 5,663 | 5,542 | 11,436 | 10,844 | 21,832 | 21,240 |
| Cost of goods sold | -3,773 | -3,694 | -7,698 | -7,313 | -14,858 | -14,473 |
| Gross profit | 1,890 | 1,848 | 3,738 | 3,531 | 6,974 | 6,767 |
| Selling expenses | -545 | -515 | -1,064 | -1,019 | -2,085 | -2,040 |
| Administrative expenses | -624 | -613 | -1,216 | -1,167 | -2,467 | -2,418 |
| Research and development costs | -81 | -68 | -157 | -139 | -295 | -277 |
| Other operating income/expenses | 234 | -1 | 225 | 18 | 289 | 82 |
| Profit from part. in assoc. companies | 1 | 0 | 1 | 0 | 1 | 0 |
| Operating profit | 875 | 651 | 1,527 | 1,224 | 2,417 | 2,114 |
| Financial income and expenses | -34 | -40 | -78 | -67 | -174 | -163 |
| Profit before tax | 841 | 611 | 1,449 | 1,157 | 2,243 | 1,951 |
| Tax | -129 | -178 | -297 | -345 | -552 | -600 |
| Net profit | 712 | 433 | 1,152 | 812 | 1,691 | 1,351 |
| Trelleborg Automotive 1) | ||||||
| Net sales | 1,865 | 1,827 | 3,755 | 3,539 | 7,328 | 7,112 |
| Operating profit | 109 | 34 | 190 | 87 | 347 | 244 |
| Discontinued operations | ||||||
| Net sales | 5 | 214 | 115 | 470 | 443 | 798 |
| Operating profit | 131 | 19 | 142 | 298 | 175 | 331 |
| Trelleborg Automotive 1) / Disc operations | ||||||
| Profit before tax | 215 | 44 | 296 | 360 | 465 | 529 |
| Net profit | 189 | 34 | 250 | 340 | 397 | 487 |
| Group, total | ||||||
| Net sales | 7,533 | 7,583 | 15,306 | 14,853 | 29,603 | 29,150 |
| Operating profit | 1,115 | 704 | 1,859 | 1,609 | 2,939 | 2,689 |
| Profit before tax | 1,056 | 655 | 1,745 | 1,517 | 2,708 | 2,480 |
| Total net profit | 901 | 467 | 1,402 | 1,152 | 2,088 | 1,838 |
| of which attributable to: | ||||||
| - equity holders of the parent | 896 | 465 | 1,390 | 1,144 | 2,065 | 1,819 |
| - non-controlling interest | 5 | 2 | 12 | 8 | 23 | 19 |
| Earnings per share | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
| SEK | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations | 2.60 | 1.60 | 4.20 | 3.00 | 6.15 | 4.95 |
| Trelleborg Automotive 1) / Disc operations | 0.75 | 0.10 | 0.95 | 1.20 | 1.50 | 1.75 |
| Group, total | 3.35 | 1.70 | 5.15 | 4.20 | 7.65 | 6.70 |
| 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 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 | 271,071,783 |
| Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Total net profit | 901 | 467 | 1,402 | 1,152 | 2,088 | 1,838 |
| Other comprehensive income | ||||||
| Cash flow hedges | -23 | -37 | -1 | 2 | -77 | -74 |
| Hedging of net investment | -44 | -176 | 142 | 56 | 14 | -72 |
| Translation difference | 89 | 382 | -378 | -164 | -199 | 15 |
| Income tax relating to components of other comprehensive income |
25 | 49 | -25 | -15 | 36 | 46 |
| Other comprehensive income, net of tax 2) | 47 | 218 | -262 | -121 | -226 | -85 |
| Total comprehensive income | 948 | 685 | 1,140 | 1,031 | 1,862 | 1,753 |
| Total profit for the period | ||||||
| Published on July 19, 2012 - equity holders of the parent |
937 | 678 | 1,126 | 1,024 | 1,835 | 11 (22) 1,733 |
| - non-controlling interest | 11 | 7 | 14 | 7 | 27 | 20 |
| Balance Sheets | |||
|---|---|---|---|
| Group | Jun 30 | Jun 30 | Dec 31 |
| SEK M | 2012 | 2011 | 2011 |
| Property, plant and equipment | 4,813 | 5,675 | 5,958 |
| Intangible assets | 9,086 | 10,254 | 10,457 |
| Financial assets | 1,093 | 1,297 | 1,284 |
| Total non-current assets | 14,992 | 17,226 | 17,699 |
| Inventories | 3,502 | 3,914 | 4,001 |
| Current operating receivables | 5,574 | 6,703 | 6,025 |
| Current interest-bearing receivables | 90 | 98 | 213 |
| Cash and cash equivalents | 711 | 824 | 753 |
| Total current assets | 9,877 | 11,539 | 10,992 |
| Assets held for sale 1) | 4,655 | - | - |
| Total assets | 29,524 | 28,765 | 28,691 |
| Equity holders of the parent | 13,786 | 12,629 | 13,338 |
| Non-controlling interest 2) | 175 | 126 | 166 |
| Total equity | 13,961 | 12,755 | 13,504 |
| Non-current interest-bearing liabilities | 5,903 | 5,672 | 5,452 |
| Other non-current liabilities | 891 | 1,121 | 1,125 |
| Total non-current liabilities | 6,794 | 6,793 | 6,577 |
| Interest-bearing current liabilities | 2,213 | 2,542 | 2,171 |
| Other current liabilities | 5,106 | 6,675 | 6,439 |
| Total current liabilities | 7,319 | 9,217 | 8,610 |
| Liabilites held for sale 1) | 1,450 | - | - |
| Total equity and liabilities | 29,524 | 28,765 | 28,691 |
1) To largest extent related to Trelleborg Automotive
| Specification of changes in equity | Jun 30 | Jun 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2012 | 2011 | 2011 |
| Attributable to equity holders of the parent | |||
| Opening balance, January 1 | 13,338 | 12,079 | 12,079 |
| Total comprehensive income | 1,126 | 1,024 | 1,733 |
| Dividend | -678 | -474 | -474 |
| Closing balance | 13,786 | 12,629 | 13,338 |
| Attributable to non-controlling interest | |||
| Opening balance, January 1 | 166 | 117 | 117 |
| Total comprehensive income | 14 | 7 | 20 |
| Acquisition | - | 4 | 32 |
| Dividend | -5 | -2 | -3 |
| Closing balance 2) | 175 | 126 | 166 |
| Sum total equity, closing balance | 13,961 | 12,755 | 13,504 |
2) Of which as of end June 2012 SEK 129 M relates to Trelleborg Automotive
TRELLEBORG AB INTERIM REPORT APRIL – JUNE 2012
Cash flow statements
| Group | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Operating activities | ||||||
| Operating profit | 875 | 651 | 1,527 | 1,224 | 2,417 | 2,114 |
| Adjustments for items not included in cash flow: | ||||||
| Depreciation, property, plant and equipment | 170 | 148 | 325 | 292 | 631 | 598 |
| Amortization, intangible assets | 11 | 12 | 22 | 23 | 51 | 52 |
| Impairment losses, property, plant and equipment | 0 | 1 | 4 | 1 | 10 | 7 |
| Impairment losses, intangible assets | 1 | -2 | 1 | -2 | 0 | -3 |
| Provision for restructuring costs | 32 | 26 | 51 | 27 | 155 | 131 |
| Other, non cash-flow affecting items | 1 | -1 | 2 | -2 | 40 | 36 |
| 1,090 | 835 | 1,932 | 1,563 | 3,304 | 2,935 | |
| Interest received and other financial items | 6 | 4 | 11 | 4 | 24 | 17 |
| Interest paid and other financial items | -14 | -15 | -109 | -203 | -161 | -255 |
| Taxes paid | -121 | -104 | -216 | -199 | -422 | -405 |
| Cash flow from operating activities before changes in working | ||||||
| capital | 961 | 720 | 1,618 | 1,165 | 2,745 | 2,292 |
| Cash flow from changes in working capital: | ||||||
| Change in inventories | -34 | -195 | -50 | -445 | -87 | -482 |
| Change in operating receivables | -11 | -142 | -913 | -622 | -215 | 76 |
| Change in operating liabilities | 4 | 21 | 167 | 75 | -98 | -190 |
| Utilization of restructuring provisions | -29 | -68 | -66 | -93 | -196 | -223 |
| Cash flow from operating activities | 891 | 336 | 756 | 80 | 2,149 | 1,473 |
| Investing activities | ||||||
| Acquisitions | 2 | -344 | 2 | -673 | -71 | -746 |
| Disposals / Trelleborg Automotive | 86 | 115 | 43 | 354 | 160 | 471 |
| Capital expenditure, property, plant and equipment | -234 | -143 | -394 | -230 | -942 | -778 |
| Capital expenditure in intangible assets | -9 | -4 | -16 | -6 | -50 | -40 |
| Sale of non-current assets | 3 | 6 | 6 | 11 | 25 | 30 |
| Cash flow from investing activities | -152 | -370 | -359 | -544 | -878 | -1,063 |
| Financing activities | ||||||
| Change in interest-bearing investments | -129 | -116 | -11 | 184 | -347 | -152 |
| Change in interest-bearing liabilities | 254 | 729 | 501 | 768 | -114 | 153 |
| Dividend - equity holders of the parent | -678 | -474 | -678 | -474 | -678 | -474 |
| Dividend - non-controlling interest | -5 | -2 | -5 | -2 | -6 | -3 |
| Cash flow from financing activities | -558 | 137 | -193 | 476 | -1,145 | -476 |
| Cash flow for the period | 181 | 103 | 204 | 12 | 126 | -66 |
| Cash and cash equivalents: | ||||||
| At beginning of the period | 757 | 704 | 753 | 832 | 824 | 832 |
| Reclassification to assets held for sale | -229 | - | -229 | - | -229 | - |
| Exchange rate differences | 2 | 17 | -17 | -20 | -10 | -13 |
| Cash and cash equivalents at end of period | 711 | 824 | 711 | 824 | 711 | 753 |
TRELLEBORG AB INTERIM REPORT APRIL – JUNE 2012
Group review
| Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year | |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations excluding items | ||||||
| affecting comparability | ||||||
| Net sales | 5,663 | 5,542 | 11,436 | 10,844 | 21,832 | 21,240 |
| EBITDA | 886 | 836 | 1,727 | 1,565 | 3,061 | 2,899 |
| Operating profit | 704 | 679 | 1,375 | 1,253 | 2,374 | 2,252 |
| Net profit | 533 | 454 | 987 | 833 | 1,606 | 1,452 |
| Net sales | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations | ||||||
| Trelleborg Wheel Systems | 1,052 | 1,006 | 2,180 | 1,956 | 4,087 | 3,863 |
| Trelleborg Sealing Solutions | 1,944 | 1,905 | 3,917 | 3,718 | 7,487 | 7,288 |
| Trelleborg Engineered Systems | 2,765 | 2,763 | 5,545 | 5,330 | 10,605 | 10,390 |
| Other companies | 3 | -16 | 4 | 67 | 48 | 111 |
| Eliminations | -101 | -116 | -210 | -227 | -395 | -412 |
| Total | 5,663 | 5,542 | 11,436 | 10,844 | 21,832 | 21,240 |
| EBITDA | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations excluding items affecting comparability |
||||||
| Trelleborg Wheel Systems | 158 | 132 | 337 | 247 | 582 | 492 |
| Trelleborg Sealing Solutions | 528 | 469 | 1,009 | 866 | 1,840 | 1,697 |
| Trelleborg Engineered Systems | 265 | 321 | 515 | 606 | 951 | 1,042 |
| Other companies | -10 | -19 | -19 | -39 | -57 | -77 |
| Group items | -55 | -67 | -115 | -115 | -255 | -255 |
| Total excl. items affecting comparability | 886 | 836 | 1,727 | 1,565 | 3,061 | 2,899 |
| Items affecting comparability | ||||||
| Trelleborg Wheel Systems | - | - | - | - | - | - |
| Trelleborg Sealing Solutions | -1 | -5 | -4 | -8 | -17 | -21 |
| Trelleborg Engineered Systems | -22 | -10 | -28 | -7 | -103 | -82 |
| Other companies | - | -11 | - | -12 | -15 | -27 |
| Group items | 194 | - | 184 | - | 183 | -1 |
| Total items affecting comparability | 171 | -26 | 152 | -27 | 48 | -131 |
| Total incl. items affecting comparability | 1,057 | 810 | 1,879 | 1,538 | 3,109 | 2,768 |
| EBITDA | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| % | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations excluding items affecting comparability |
||||||
| Trelleborg Wheel Systems | 15.0 | 13.1 | 15.5 | 12.6 | 14.2 | 12.7 |
| Trelleborg Sealing Solutions | 27.1 | 24.6 | 25.7 | 23.3 | 24.6 | 23.3 |
| Trelleborg Engineered Systems | 9.6 | 11.6 | 9.3 | 11.4 | 9.0 | 10.0 |
| Total excl. items affecting comparability | 15.6 | 15.1 | 15.1 | 14.4 | 14.0 | 13.7 |
| Including items affecting comparability | ||||||
| Trelleborg Wheel Systems | 15.0 | 13.1 | 15.5 | 12.6 | 14.3 | 12.7 |
| Trelleborg Sealing Solutions | 27.0 | 24.3 | 25.6 | 23.1 | 24.4 | 23.0 |
| Trelleborg Engineered Systems | 8.8 | 11.3 | 8.8 | 11.3 | 8.0 | 9.2 |
| Total incl. items affecting comparability | 18.7 | 14.6 | 16.4 | 14.2 | 14.2 | 13.0 |
TRELLEBORG AB INTERIM REPORT APRIL – JUNE 2012
| Operating profit | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations excluding items affecting comparability |
||||||
| Trelleborg Wheel Systems | 133 | 108 | 289 | 204 | 486 | 401 |
| Trelleborg Sealing Solutions | 464 | 420 | 893 | 772 | 1,616 | 1,495 |
| Trelleborg Engineered Systems | 178 | 241 | 338 | 440 | 603 | 705 |
| Other companies | -10 | -21 | -20 | -44 | -61 | -85 |
| Group items | -61 | -69 | -125 | -119 | -270 | -264 |
| Total excl. items affecting comparability | 704 | 679 | 1,375 | 1,253 | 2,374 | 2,252 |
| Items affecting comparability | ||||||
| Trelleborg Wheel Systems | - | - | - | - | - | - |
| Trelleborg Sealing Solutions | -1 | -6 | -4 | -9 | -15 | -20 |
| Trelleborg Engineered Systems | -22 | -10 | -28 | -7 | -109 | -88 |
| Other companies | - | -11 | - | -12 | -15 | -27 |
| Group items | 194 | -1 | 184 | -1 | 182 | -3 |
| Total items affecting comparability | 171 | -28 | 152 | -29 | 43 | -138 |
| Total incl. items affecting comparability | 875 | 651 | 1,527 | 1,224 | 2,417 | 2,114 |
| Operating margin, (ROS) | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| % | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Continuing operations excluding items affecting comparability |
||||||
| Trelleborg Wheel Systems | 12.6 | 10.8 | 13.2 | 10.4 | 11.9 | 10.4 |
| Trelleborg Sealing Solutions | 23.8 | 22.0 | 22.8 | 20.8 | 21.6 | 20.5 |
| Trelleborg Engineered Systems | 6.4 | 8.7 | 6.1 | 8.3 | 5.7 | 6.8 |
| Total excl. items affecting comparability | 12.4 | 12.2 | 12.0 | 11.6 | 10.9 | 10.6 |
| Including items affecting comparability | ||||||
| Trelleborg Wheel Systems | 12.6 | 10.8 | 13.2 | 10.4 | 11.9 | 10.4 |
| Trelleborg Sealing Solutions | 23.8 | 21.7 | 22.7 | 20.5 | 21.4 | 20.2 |
| Trelleborg Engineered Systems | 5.6 | 8.4 | 5.6 | 8.1 | 4.7 | 5.9 |
| Total incl. items affecting comparability | 15.4 | 11.8 | 13.3 | 11.3 | 11.1 | 10.0 |
| Capital employed | Jun 30 | Jun 30 | Dec 31 |
|---|---|---|---|
| SEK M | 2012 | 2011 | 2011 |
| Continuing operations | |||
| Trelleborg Wheel Systems | 2,453 | 2,182 | 2,191 |
| Trelleborg Sealing Solutions | 7,477 | 7,350 | 7,339 |
| Trelleborg Engineered Systems | 7,519 | 7,063 | 7,260 |
| Other companies | -15 | 119 | 102 |
| Group items | 143 | -119 | -172 |
| Provision for restructuring costs and legal costs | -84 | -125 | -93 |
| Total | 17,493 | 16,470 | 16,627 |
| Return on capital employed, (ROCE) | Jul 2011 - | Jul 2010 - | Full year |
|---|---|---|---|
| % | Jun 2012 | Jun 2011 | 2011 |
| Continuing operations excluding items affecting comparability | |||
| Trelleborg Wheel Systems | 20.5 | 16.9 | 18.2 |
| Trelleborg Sealing Solutions | 21.7 | 18.2 | 20.7 |
| Trelleborg Engineered Systems | 8.1 | 13.1 | 9.9 |
| Total excluding items affecting comparability | 13.8 | 13.5 | 13.6 |
| Including items affecting comparability | |||
| Trelleborg Wheel Systems | 20.5 | 16.5 | 18.3 |
| Trelleborg Sealing Solutions | 21.5 | 17.8 | 20.4 |
| Trelleborg Engineered Systems | 6.7 | 12.0 | 8.7 |
| Total including items affecting comparability | 14.1 | 12.7 | 12.9 |
| Cash flow report | Capital | Sold non | Change in | Total cash flow | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA 1) | expenditure | current assets | working capital | Jan - Jun | Jan - Jun | Jul 2011 - | |||||
| SEK M | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | Jun 2012 |
| Trelleborg Wheel Systems | 345 | 253 | -80 | -43 | 0 | 1 | -304 | -253 | -39 | -42 | 188 |
| Trelleborg Sealing Solutions | 1,023 | 876 | -119 | -64 | 4 | 4 | -207 | -260 | 701 | 556 | 1,506 |
| Trelleborg Engineered Systems | 535 | 626 | -188 | -108 | 1 | 5 | -292 | -499 | 56 | 24 | 379 |
| Other companies | -4 | -23 | -1 | -9 | 1 | - | 22 | -9 | 18 | -41 | 9 |
| Group items | -170 | -169 | -22 | -12 | - | 1 | -15 | 29 | -207 | -151 | -348 |
| Operating cash flow | 1,729 | 1,563 | -410 | -236 | 6 | 11 | -796 | -992 | 529 | 346 | 1,734 |
| Utilization of restructuring provisions/sale of property | 137 | -93 | 7 | ||||||||
| Dividend - non-controlling interest | -5 | -2 | -6 | ||||||||
| Financial items | -98 | -199 | -137 | ||||||||
| Paid tax | -216 | -199 | -422 | ||||||||
| Free cash flow | 347 | -147 | 1,176 | ||||||||
| Acquisitions | 2 | -673 | -71 | ||||||||
| Disposals / Trelleborg Automotive | 43 | 354 | 160 | ||||||||
| Dividend - equity holders of the parent | -678 | -474 | -678 | ||||||||
| Sum net cash flow | -286 | -940 | 587 |
1) Excluding other non cash-flow affecting items
Acquisitions
There were no acquisitions during the quarter.
Key ratios per quarter
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations | |||||||||
| Net sales | 5,663 | 5,773 | 5,159 | 5,237 | 5,542 | 5,302 | 5,044 | 4,848 | 5,270 |
| Operating profit | 875 | 652 | 319 | 571 | 651 | 573 | 342 | 430 | 541 |
| Profit for the period | 712 | 440 | 138 | 401 | 433 | 379 | 239 | 279 | 353 |
| Operating cash flow | 606 | -77 | 615 | 590 | 378 | -32 | 699 | 452 | 511 |
| Items aff. comparability in operating profit | 171 | -19 | -63 | -46 | -28 | -1 | -64 | -53 | -30 |
| Operating profit, excl. items aff. comp. | 704 | 671 | 382 | 617 | 679 | 574 | 406 | 483 | 571 |
| EBITDA, %, excl. items aff. comparability | 15.6 | 14.6 | 10.7 | 15.0 | 15.1 | 13.7 | 11.3 | 13.5 | 14.2 |
Net sales by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations | |||||||||
| Trelleborg Wheel Systems | 1,052 | 1,128 | 954 | 953 | 1,006 | 950 | 738 | 732 | 795 |
| Trelleborg Sealing Solutions | 1,944 | 1,973 | 1,706 | 1,864 | 1,905 | 1,813 | 1,574 | 1,630 | 1,713 |
| Trelleborg Engineered Systems | 2,765 | 2,780 | 2,562 | 2,498 | 2,763 | 2,567 | 2,765 | 2,518 | 2,809 |
| Other companies | 3 | 1 | 14 | 30 | -16 | 83 | 76 | 61 | 64 |
| Eliminations | -101 | -109 | -77 | -108 | -116 | -111 | -109 | -93 | -111 |
| Total | 5,663 | 5,773 | 5,159 | 5,237 | 5,542 | 5,302 | 5,044 | 4,848 | 5,270 |
EBITDA % by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| % | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations excluding items affecting comparability |
|||||||||
| Trelleborg Wheel Systems | 15.0 | 15.9 | 12.8 | 12.9 | 13.1 | 12.1 | 10.4 | 13.8 | 10.3 |
| Trelleborg Sealing Solutions | 27.1 | 24.4 | 21.0 | 25.4 | 24.6 | 21.9 | 17.7 | 19.5 | 20.3 |
| Trelleborg Engineered Systems | 9.6 | 9.0 | 6.3 | 11.0 | 11.6 | 11.1 | 11.4 | 12.8 | 13.5 |
| Total | 15.6 | 14.6 | 10.7 | 15.0 | 15.1 | 13.7 | 11.3 | 13.5 | 14.2 |
Operating profit by business area
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations excluding items affecting comparability |
|||||||||
| Trelleborg Wheel Systems | 133 | 156 | 99 | 98 | 108 | 96 | 51 | 77 | 59 |
| Trelleborg Sealing Solutions | 464 | 429 | 301 | 422 | 420 | 352 | 234 | 262 | 297 |
| Trelleborg Engineered Systems | 178 | 160 | 77 | 188 | 241 | 199 | 229 | 235 | 283 |
| Other companies | -10 | -10 | -21 | -20 | -21 | -23 | -23 | -25 | -14 |
| Group items | -61 | -64 | -74 | -71 | -69 | -50 | -85 | -66 | -54 |
| Total | 704 | 671 | 382 | 617 | 679 | 574 | 406 | 483 | 571 |
Income Statements
| Group | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations | |||||||||
| Net sales | 5,663 | 5,773 | 5,159 | 5,237 | 5,542 | 5,302 | 5,044 | 4,848 | 5,270 |
| Cost of goods sold | -3,773 | -3,925 | -3,665 | -3,495 | -3,694 | -3,619 | -3,470 | -3,291 | -3,544 |
| Gross profit | 1,890 | 1,848 | 1,494 | 1,742 | 1,848 | 1,683 | 1,574 | 1,557 | 1,726 |
| Selling expenses | -545 | -519 | -516 | -505 | -515 | -504 | -510 | -477 | -513 |
| Administrative expenses | -624 | -592 | -658 | -593 | -613 | -554 | -654 | -535 | -582 |
| Research and development costs | -81 | -76 | -73 | -65 | -68 | -71 | -71 | -66 | -72 |
| Other operating income/costs | 234 | -9 | 72 | -8 | -1 | 19 | 3 | -49 | -18 |
| Profit from part. in assoc. companies | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating profit | 875 | 652 | 319 | 571 | 651 | 573 | 342 | 430 | 541 |
| Financial income and expenses | -34 | -44 | -69 | -27 | -40 | -27 | -34 | -31 | -42 |
| Profit before tax | 841 | 608 | 250 | 544 | 611 | 546 | 308 | 399 | 499 |
| Tax | -129 | -168 | -112 | -143 | -178 | -167 | -69 | -120 | -146 |
| Net profit | 712 | 440 | 138 | 401 | 433 | 379 | 239 | 279 | 353 |
| Trelleborg Automotive 1) | |||||||||
| Net sales | 1,865 | 1,890 | 1,794 | 1,779 | 1,827 | 1,712 | 1,618 | 1,584 | 1,715 |
| Operating profit | 109 | 81 | 125 | 32 | 34 | 53 | 48 | 63 | 88 |
| Discontinued operations | |||||||||
| Net sales | 5 | 110 | 153 | 175 | 214 | 256 | 383 | 433 | 829 |
| Operating profit | 131 | 11 | 15 | 18 | 19 | 279 | 33 | 52 | -146 |
| Trelleborg Automotive 1)/ Disc operations | |||||||||
| Profit before tax | 215 | 81 | 146 | 23 | 44 | 316 | 72 | 88 | -65 |
| Net profit | 189 | 61 | 128 | 19 | 34 | 306 | 23 | 76 | -79 |
| Group, total | |||||||||
| Net sales | 7,533 | 7,773 | 7,106 | 7,191 | 7,583 | 7,270 | 7,045 | 6,865 | 7,814 |
| Operating profit | 1,115 | 744 | 459 | 621 | 704 | 905 | 423 | 545 | 483 |
| Profit before tax | 1,056 | 689 | 396 | 567 | 655 | 862 | 380 | 487 | 434 |
| Total net profit | 901 | 501 | 266 | 420 | 467 | 685 | 262 | 355 | 274 |
| - equity holders of the parent | 896 | 494 | 262 | 413 | 465 | 679 | 257 | 351 | 269 |
| - non-controlling interest | 5 | 7 | 4 | 7 | 2 | 6 | 5 | 4 | 5 |
| Earnings per share | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 |
| SEK | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 | 2010 | 2010 | 2010 |
| Continuing operations | 2.60 | 1.60 | 0.50 | 1.45 | 1.60 | 1.40 | 0.90 | 1.00 | 1.30 |
| Trelleborg Automotive 1) / Disc operations | 0.75 | 0.20 | 0.45 | 0.10 | 0.10 | 1.10 | 0.05 | 0.30 | -0.30 |
| Group, total | 3.35 | 1.80 | 0.95 | 1.55 | 1.70 | 2.50 | 0.95 | 1.30 | 1.00 |
1) Operations included in the joint venture Trelleborg Vibracoustic as from beginning Q3 2012.
Parent Company
Income Statements
| Parent company | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jul 2011 - | Full year |
|---|---|---|---|---|---|---|
| SEK M | 2012 | 2011 | 2012 | 2011 | Jun 2012 | 2011 |
| Administrative expenses | -54 | -83 | -113 | -149 | -319 | -355 |
| Other operating income | 186 | 12 | 187 | 21 | 395 | 229 |
| Operating profit | 132 | -71 | 74 | -128 | 76 | -126 |
| Financial income and expenses | 126 | 437 | -123 | 566 | 775 | 1,464 |
| Profit before tax | 258 | 366 | -49 | 438 | 851 | 1,338 |
| Tax | 33 | 70 | 109 | 123 | -10 | 4 |
| Net profit | 291 | 436 | 60 | 561 | 841 | 1,342 |
Statements of comprehensive income Net profit 291 436 60 561 841 1,342 Other comprehensive income Fair value - 7 - -2 2 - Income tax relating to components of other comprehensive income - -2 - - - - Other comprehensive income, net of tax - 5 - -2 2 - Total comprehensive income 291 441 60 559 843 1,342
| Balance Sheets | |||
|---|---|---|---|
| Parent company | Jun 30 | Jun 30 | Dec 31 |
| SEK M | 2012 | 2011 | 2011 |
| Property, plant and equipment | 22 | 24 | 23 |
| Intangible assets | 2 | 6 | 4 |
| Financial assets | 35,766 | 34,834 | 34,732 |
| Total non-current assets | 35,790 | 34,864 | 34,759 |
| Current operating receivables | 77 | 62 | 53 |
| Current tax assets | - | 124 | - |
| Current interest-bearing receivables | 213 | 24 | 597 |
| Cash and cash equivalents | 65 | 0 | 0 |
| Total current assets | 355 | 210 | 650 |
| Total assets | 36,145 | 35,074 | 35,409 |
| Shareholders' equity | 12,859 | 12,695 | 13,477 |
| Total equity | 12,859 | 12,695 | 13,477 |
| Non-current interest-bearing liabilities | 33 | 29 | 29 |
| Other non-current liabilities | 12 | 18 | 16 |
| Total non-current liabilities | 45 | 47 | 45 |
| Interest-bearing current liabilities | 23,162 | 22,266 | 21,789 |
| Other current liabilities | 79 | 66 | 98 |
| Total current liabilities | 23,241 | 22,332 | 21,887 |
| Total equity and liabilities | 36,145 | 35,074 | 35,409 |
Board's assurance and Auditor's review report
| Board's assurance | This interim report presents a fair overview of the operations, position and earnings of the Parent Company and the Group and describes significant risks and uncertainties faced by the Parent Company and the companies included in the Group report. Trelleborg, July 19, 2012 Trelleborg AB (publ) |
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| Anders Narvinger Chairman of the Board |
Heléne Vibbleus Bergquist Board Member |
Hans Biörck Board Member Nina Udnes Tronstad Board Member |
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| Claes Lindqvist Board Member |
Sören Mellstig Board Member |
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| Bo Risberg Board Member |
Mikael Nilsson Board Member |
Peter Larsson Board Member |
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| Karin Linsjö Board Member |
Peter Nilsson Board Member and President/CEO |
Birgitta Håkansson Deputy Board Member |
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| Auditor's review report |
an audit. Accordingly, we do not express an audit opinion. regarding the Parent Company. Mikael Eriksson |
We have reviewed this report for the period January 1, 2012 to June 30, 2012 for Trelleborg AB. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review. We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Reports Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially more limited in scope than an audit conducted in accordance with ISA and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain such assurance that we would become aware of all significant matters that might be identified in Based on our review, nothing has come to our attention that causes us to believe that the interim report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, Trelleborg, July 19, 2012 PricewaterhouseCoopers AB Eric Salander Authorized Public Accountant |
Authorized Public Accountant | |||
| Auditor in Charge |
Financial definitions
Return on shareholders' equity, %
Profit for the period, attributable to shareholders of the Parent Company as a percentage of average shareholders' equity, excluding non-controlling interests.
Return on capital employed (ROCE), %
Operating profit divided by the average capital employed.
EBITDA
Operating profit excluding depreciation and amortization of PPE and intangible assets.
EBITDA margin, %
EBITDA excluding profit from participations in associated companies as a percentage of net sales.
Free cash flow
Operating cash flow, cash flow from financial items, taxes and the effect of restructuring measures on cash flow.
Net debt
Interest-bearing liabilities less interest-bearing assets, cash and cash equivalents.
Operating cash flow
EBITDA excluding other non-cash-flow affecting items, investments, sold non-current assets and changes in working capital but excluding cash flow pertaining to restructuring.
Operating cash flow/operating profit, %
Operating cash flow as a percentage of operating profit.
Earnings per share
Profit for the period, attributable to shareholders of the Parent Company, divided by the average number of shares outstanding.
Operating margin (ROS), %
Operating profit excluding participation in the earnings of associated companies as a percentage of net sales.
Operating profit
Operating profit as stated in the income statement.
Debt/equity ratio, %
Net debt divided by total equity.
Net debt/EBITDA
Net debt divided by EBITDA.
Equity/assets ratio, %
Total equity divided by total assets.
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 telephone conference on July 19 at 09:30 a.m.
A telephone conference will be held on July 19 at 09:30 a.m. To participate in the telephone conference, call +46 (0)8 5056 2932 or +44 (0) 2077 5099 50 or +1 8666 7658 69. Code: "Trelleborg". The conference will also be broadcast on the Internet in real time. Visit our website at: www.trelleborg.com/en/Investors/Presentations for the Internet link and presentation materials.
Calendar
| October 24, 2012 |
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| February 13, 2013 |
| April 24, 2013 |
| April 24, 2013 |
| July 23, 2013 |
For further information, please contact:
Investors/analysts Media Christofer Sjögren, VP Investor Relations Karin Larsson, VP Media Relations Phone: +46 (0)410 670 68Phone: +46 (0)410 670 15 Mobile: +46 (0)708 66 51 40 Mobile: +46 (0)733 74 70 15 E-mail: [email protected] E-mail: [email protected]
For information about the Trelleborg Group, Annual Reports, the stakeholder magazine T-TIME and other information, please visit Group's website: www.trelleborg.com.
Trelleborg AB (publ) Corp. Reg. No. 556006-3421 Box 153, SE-231 22 Trelleborg Sweden Tel: +46 (0)410 670 00 www.trelleborg.com
This report contains forward-looking statements that are based on the current expectations of the management of Trelleborg. Although management believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Accordingly, results could differ materially from those implied in the forward-looking statements as a result of, among other factors, changes in economic, market and competitive conditions, changes in the regulatory environment and other government actions, fluctuations in exchange rates and other factors.
This is information of the type that Trelleborg AB publ) is obligated to disclose in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on Thursday, July 19, 2012, at 07:45 a.m.