Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Coronavirus
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
    • India’s PU footwear market booming
      India levies anti-dumping duty on polyols from Saudi Arabia and UAE
      World car registrations rebounded in March
      Wanhua doubled revenue in Q1 2021
    • US refrigerator import growth 149% in February 2021
      US mattress imports kept on falling in February
      World car registrations rebounded in March
      US footwear imports up in February 2021
    • Trelleborg sales down slightly in 1Q 21
      Strong start for Kingspan in 2021
      Repi expands into thermoplastics
      Vita Group expands into Italy with EUR6.1m investment
    • Repi expands into thermoplastics
      Vita Group expands into Italy with EUR6.1m investment
      Recticel completes FoamPartner purchase
      iStock, 2019, 800, Web, glue, adhesive, sticky, CASE
      Plixxent moves into the UK
    • Trelleborg sales down slightly in 1Q 21
      Strong start for Kingspan in 2021
      Wanhua doubled revenue in Q1 2021
      Grammer felt the coronavirus fever in 2020
    • World car registrations rebounded in March
      Western Europe's car registrations rebounded in March 2021
      US car sales up dramatically in March 2021
      Foam and chip shortage hit US car production
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
    • China’s PU industry on the path to recovery; plans for technology upgrades
      Chinese cold chains grow bigger
      Flexible foam rises to challenges in the Middle East and Africa
      Life at the cross-roads: what does the GCC offer PU?
    • Europe's flexible foam makers face rising prices as outages hit markets
      Western European car registrations rebound slowed in September
      Western European car registrations regained some ground in August
      Western European Car registrations rebound continued in July
    • Take out the VOC with hybrid release agents
      Batteries give pultrusions power
      Seeing a way through VOC and FOG
      Aromatic polyols for simpler rigid PU formulations
    • Taking the helm at Baumer
      Hennecke and Frimo: an automotive partnership
      Pushing ahead: AutoRIM drives KM’s UK growth
      BASF opens it first ‘Creation Center’ in Mumbai with a PU twist
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
October 29, 2020 02:09 PM

Sales and EBIT on the decline at Trelleborg as coronavirus bites

Utech Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Trelleborg, Sweden – Trelleborg managed costs in the third quarter of 2020 and was able to increase earnings, despite falling sales.

    Overall sales were SEK7.7bn ($888.2m) in the third quarter, up 12.3% on the same period last year. EBIT reached SEK919m in the third quarter of 2020, 1% more than last year.

    Nilsson: Second quarter was very challenging

    'The stable level of earnings, given the circumstances, was achieved through a strong focus on strict cost control and good price discipline,' said CEO Peter Nilsson.

    As far as polyurethanes are concerned, the biggest increase in EBIT came from the wheel systems business. Lower production and tight cost controls drove it up by 83% between Q3 2019 and 2020. In the most recent quarter, it reached SEK272m, on sales which were down 5% at SEK2.1bn. In the third quarter of 2019, sales were SEK2.2bn.

    Nilsson said this was a result of deliveries of agricultural tyres to both OE manufacturers and aftermarket sales. ‘Sales of tyres for material handling and construction vehicles remained weaker,' he said. 

    Slowdowns in the construction and infrastructure sectors compared to the third quarter of 2019 hit led to a 13.5% fall in sales at the company's industrial solutions business, to SEK2.4bn in the most recent quarter. This compares with SEK2.7b in the equivalent period in 2019.

    EBIT in the division fell by 9.3% to SEK262m in the third quarter of 2020. This compares with SEK289m in the equivalent period in 2019. Lower sales volumes because of coronavirus could not be offset by cost controls, with earnings suffering as a result. A stronger kroner made matters worse for the division. 

    Deliveries from the sealing solutions business to the aerospace industry were halved, contributing to a 15.8% fall in sales to SEK2.5bn in the third quarter of 2020. This compares with SEK2.98bn in last year's quarter. 

    Divisional EBIT fell 32.0% to SEK454m in the third quarter of 2020. The dramatic fall was because the business could not react sufficiently fast to the parts of its market that closed, leaving excess capacity. Trelleborg said it expects to sort this out next year. 

    It was not all bad news from the business, although there was a dramatic fall in aerospace demand. 'Sales to both general industry and the automotive segment improved, compared with the sharp fall during the second quarter. China stood out, in particular, with a positive trend,' Nilsson said.

    Looking ahead, he added: 'We foresee a tougher climate during the fourth quarter of the year, not least in the oil & gas segment, and a recovery in the aerospace segment will not occur until further into the future. Demand for the fourth quarter will be on a par with the third quarter.' 

    Currency conversion XE.com
     

    Trelleborg numbers Q3 2020 (SEK m)
    Group Q3 2020 Q3 2019 Change %
    Sales 7743.0 8828.0 -12.3
    EBIT 919.0 909.0 1.1
    Margin % 11.9 10.3
    Industrial Solutions
    Sales 2354 2722 -13.5
    EBIT 262.0 289.0 -9.3
    Margin % 11.1 10.6
    Sealing Solutions
    Sales 2512 2982 -15.8
    EBIT 454 668 -32.0
    Margin % 18.1 22.4
    Wheel Systems
    Sales 2075 2188 -5.2
    EBIT 272 148 83.8
    Margin % 13.1 6.8
    Source: Trelleborg
    Recommended for You
    Trelleborg sales down slightly in 1Q 21
    Trelleborg sales down slightly in 1Q 21
    Strong start for Kingspan in 2021
    Strong start for Kingspan in 2021
    India’s PU footwear market booming
    India’s PU footwear market booming
    Latest Issue
    Click HERE for Free Download
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Office 127,
    61, Willow Walk,
    London
    SE1 5SF
    E-mail us
    +44 (0) 203 287 5979

    Customer Service:
    +1 313 446 0450

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • Coronavirus
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
    • Advertise
    • Contact Us
    • Issues
    • Subscribe