Trelleborg Business report FY2009

Business Highlights

Financial Overview

(in million SEK)
  FY2009 FY2008 Rate
of change(%)
Sales 27,059 31,263 (13.4) -
Operating profit 773 374 106.7
Sales 8,402 9,506
(11.6) 1)
Operating profit (loss) (58) (1,247)


-Sales declined 11.6% (2008: declined 8.1%) for full-year 2009. There was a marked fall in sales at the beginning of the year connected to a global decline in demand. Starting during the second quarter of the year, several countries launched support programs and these had a positive impact on sales during the remainder of the year.
-Operating profit, excluding items affecting comparability, improved significantly during the year due to positive effects derived from implemented structural measures and other adaptations carried out to adapt capacity and costs.
-The efficient management of working capital, a continued low investment level and improved earnings in the second half of the year contributed to a strong operating cash flow.
-The action programs announced, which are primarily intended to improve the production structure, are in their final phases. The relocation of production from France to Turkey in the Fluid Solutions business unit was completed.
-Continued development of the technological and global platform to further bolster competitiveness, which is gradually resulting in improved positions and increased orders received.
-The business area was included in Ford Motors E“classed Business Framework, E an exclusive group of only 59 component suppliers selected to serve as strategic suppliers for Ford’s global operations.


-The Company announced it is supplying the new Vacuum Switchable Hydromount for the BMW 5, 6 and 7 Series diesel vehicles. (From a press release on September 21, 2009)


-The relocation of production of certain products from Nantes, France, to Cerkezkoy, Turkey, within the Fluid Solutions business unit is complete. Production of these products in Nantes was discontinued in the fourth quarter of 2009.


R&D Expenditure

(in million SEK)
  FY2009 FY2008 FY2007
Overall 534 513 520
-During 2009, research and development expenditure amounted to SEK 534 million, corresponding to about 2% of sales.

Investment Activities

Capital Expenditure

(in million SEK)
  FY2009 FY2008 FY2007
Overall 826 1,526 1,336
Automotive 296 463 441

Investment Outside Sweden

-As for automotive business, continued investments in China, India, Brazil, Turkey and Eastern Europe to enable the business area to capitalize on the high level of growth in these markets and to create a more efficient cost base. In -anti vibration, approximately one-third of all sales occur outside North America and Western Europe.
-The Company established a wholly-owned subsidiary in Russia in August 2009 and the production is underway at the facility in Nizhny Novgorod, Russia. (from a press release on April 20, 2010)
-The Company's Sealing Solutions business inaugurated a new seals plant in Sao Jose dos Campos outside Sao Paolo, Brazil. (from a press release on November 16, 2009)

Investment in Sweden
-The Company increased its production capacity at its Kalmer plant in Sweden, launching the sixth production line. It produces brake noise and vibration damping solutions at the site. (from a press release on December 1, 2009)