Trelleborg oil field business has good Q2

Trelleborg, Sweden — Trelleborg, which makes polyurethane automotive and oil field products, had total net sales of SEK 18.7 bn ($2 bn) in the first half of 2019. This is up 7.94% on the same period last year.

EBIT across the business rose 1.2%, and reached SEK 2.6bn in the first half of 2019.

'During the second quarter of the year, sales increased by 7%,' said CEO Peter Nilsson. 'Organic sales were unchanged compared with the year-earlier quarter.'

He added that intensified political tension and global trade conflicts are hitting market sentiment. This means that the company may sell more cheaper products in the third quarter and this could hit earnings.

Job cuts are underway and restructuring costs for the year will be around SEK 500m, said the company in a statement. This is double the company's earlier guidance.

Net sales in Trelleborg's offshore & construction business rose by 4.6% between the first half of 2018 and the first half of 2019, reaching SEK 1.2bn in the first half of 2019. This compares with SEK 1.179m in the same period last year.

EBIT in the division grew by 15.3%, to a deficit of SEK 50m in the first half of 2019. This compares with an EBIT deficit of SEK 59m in the same period last year.

'Our oil and gas operation and major infrastructure construction projects are now recovering,' Nilsson said. Orders grew in the quarter, with Trelleborg winning three contracts for drill riser buoyancy modules and riser protection. Nilsson added that order growth is likely to continue in the second half of the year.

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