Trelleborg Business report FY2008
Business Highlights
Financial overview
Action program within Trelleborg Automotive
Measures within the scope of the action program:
-Restructuring of the business area's Fluid Solutions unit in Nantes, France. Significant parts of the operation are relocated, primarily to existing facilities in Turkey. About 450 individuals affected.
-Closure of operations in Peru, in the US, with approximately 200 employees
-The action program and gradual adjustments in capacity during the year reduced the number of employees by about 2,500.
-The production process in brake shims was reinforced through the acquisition of Presso- Nova in Kalmar, Sweden, and the takeover of Ruukki's surface treatment of steel in Gavle, also in Sweden.
Acquisition
-Trelleborg Sealing Solutions entered into an agreement to acquire an outstanding privately owned minority share (20%) in Trelleborg Sealing Solutions India, thereby becoming sole owner of the company. Trelleborg Sealing Solutions India is located in Bangalore, has approximately 120 employees and sales of approximately SEK 80 million. (From a press release on Mar. 31, 2008)
-The Company is taking over a plant for surface treatment of steel, which is located in Gavle, Sweden and was previously owned by the Finnish steel company, Ruukki. The plant is an existing supplier to Trelleborg Automotive's production of brake shims. The transfer of the plant is expected to occur during the fourth quarter of 2008. (From a press release on Nov. 11, 2008)
| (SEK in million) | FY2008 | FY2007 | Rate of change(%) |
Remarks |
| Overall | ||||
| Sales | 31,263 | 30,971 | 0.9 | - |
| Operating profit | 374 | 1,707 | (78.1) | - |
| Automotive | ||||
| Sales | 9,461 | 10,299 | (8.1) | The organic sales in 2008 fell by slightly less than 9 percent compared with 2007, as a result of a significant deterioration in demand, primarily in North America and Western Europe. |
| Operating profit | (381) | 203 | - | Operating profit, excluding items affecting comparability, declined as a result of negative impacts attributable to extensive cutbacks in capacity, workforce reductions, high raw material prices and falling sales. |
Action program within Trelleborg Automotive
Measures within the scope of the action program:
-Restructuring of the business area's Fluid Solutions unit in Nantes, France. Significant parts of the operation are relocated, primarily to existing facilities in Turkey. About 450 individuals affected.
-Closure of operations in Peru, in the US, with approximately 200 employees
-The action program and gradual adjustments in capacity during the year reduced the number of employees by about 2,500.
-The production process in brake shims was reinforced through the acquisition of Presso- Nova in Kalmar, Sweden, and the takeover of Ruukki's surface treatment of steel in Gavle, also in Sweden.
Acquisition
-Trelleborg Sealing Solutions entered into an agreement to acquire an outstanding privately owned minority share (20%) in Trelleborg Sealing Solutions India, thereby becoming sole owner of the company. Trelleborg Sealing Solutions India is located in Bangalore, has approximately 120 employees and sales of approximately SEK 80 million. (From a press release on Mar. 31, 2008)
-The Company is taking over a plant for surface treatment of steel, which is located in Gavle, Sweden and was previously owned by the Finnish steel company, Ruukki. The plant is an existing supplier to Trelleborg Automotive's production of brake shims. The transfer of the plant is expected to occur during the fourth quarter of 2008. (From a press release on Nov. 11, 2008)
R&D
R&D Expenditure (Group Total)
R&D Structure
-During 2008, research and development expenditure amounted to SEK 513 million, corresponding to about 2% of sales. Expenditure increased in three business areas, while it declined in Trelleborg Automotive as a result of the slowdown in the market.
Product Developments
-One of the solution within Trelleborg Automotive includes the development of a bump stop in a unique thermoplastic material for use in shock absorbers. The compact design means that it can replace traditional, more sizeable solutions, reducing material costs by 20 percent and weight by 40 percent.
-The Company developed a new active mount with a unique design specially for diesel engines. It uses a vacuum technology to change the damping properties and the unique design gives the OEM flexibility which reduces both leadtimes and costs.
-In April 2008, Trelleborg Sealing Solutions announced advances in vane seal design and manufacturing that have helped make viable the possibility of using rotary vane actuators across a wide range of engineering applications. These include engineering designs such as the control of aircraft wing flaps and anti-roll suspension systems on cars. (From a press release on Apr. 23, 2008)
-In July 2008, Trelleborg Sealing Solutions launched a range of colored coatings for O-rings. These surface treatments are ultra-thin and resistant to cracking and peeling. Allowing segregation of similar seals, they demonstrate almost the same properties as comparable clear coatings. As O-Ring materials are usually black, one seal may appear almost identical to another, but can vary slightly in dimension or be of different compounds. This is especially the case in automotive component manufacturing, and installing a seal in the incorrect location can cause leakage or even seal failure. In addition, as lighter colors can be more easily detected within a black or dark assembly, they can also aid end-of-line quality checking. (From a press release on Jun. 23, 2008)
| (SEK in million) | 2008 | 2007 | 2006 |
| Total | 513 | 520 | 522 |
R&D Structure
-During 2008, research and development expenditure amounted to SEK 513 million, corresponding to about 2% of sales. Expenditure increased in three business areas, while it declined in Trelleborg Automotive as a result of the slowdown in the market.
Product Developments
-One of the solution within Trelleborg Automotive includes the development of a bump stop in a unique thermoplastic material for use in shock absorbers. The compact design means that it can replace traditional, more sizeable solutions, reducing material costs by 20 percent and weight by 40 percent.
-The Company developed a new active mount with a unique design specially for diesel engines. It uses a vacuum technology to change the damping properties and the unique design gives the OEM flexibility which reduces both leadtimes and costs.
-In April 2008, Trelleborg Sealing Solutions announced advances in vane seal design and manufacturing that have helped make viable the possibility of using rotary vane actuators across a wide range of engineering applications. These include engineering designs such as the control of aircraft wing flaps and anti-roll suspension systems on cars. (From a press release on Apr. 23, 2008)
-In July 2008, Trelleborg Sealing Solutions launched a range of colored coatings for O-rings. These surface treatments are ultra-thin and resistant to cracking and peeling. Allowing segregation of similar seals, they demonstrate almost the same properties as comparable clear coatings. As O-Ring materials are usually black, one seal may appear almost identical to another, but can vary slightly in dimension or be of different compounds. This is especially the case in automotive component manufacturing, and installing a seal in the incorrect location can cause leakage or even seal failure. In addition, as lighter colors can be more easily detected within a black or dark assembly, they can also aid end-of-line quality checking. (From a press release on Jun. 23, 2008)
Investment Activities
Capital expenditure
Overseas Investments
-During 2008, the Company opened a small unit of Trelleborg Kunhwa, Korea, in Zhangjiagang, China, for the production of Vehicle boots for Korean customers in China.
| (in million SEK) | FY2008 | FY2007 | FY2006 |
| Automotive | 462 | 441 | 495 |
| Group Total | 1,526 | 1,336 | 1,112 |
Overseas Investments
-During 2008, the Company opened a small unit of Trelleborg Kunhwa, Korea, in Zhangjiagang, China, for the production of Vehicle boots for Korean customers in China.