[Gen-AI Analysis] Trelleborg AB Business Report FY ended 2012 - MarkLines Automotive Information & Gen-AI Platform

Trelleborg AB Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million SEK)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	Rate of change(%)	Factors
Overall
Sales	21,262	21,043	1.0	1)
Operating profit	2,342	2,231	5.0	-
Sealing Solutions
Sales	7,215	7,288	(1.0)	2)
Operating profit	1,513	1,495	1.2	-

Factor
1) Overall

-In 2012, sales for the Group’s continuing operations increased to SEK 21,262 m, up 1 percent. The effects of structural changes and exchange rates were marginal. Structural changes positively impacted net sales. However, exchange-rate effects resulting from the translation of foreign subsidiaries had a negative impact.

2) Sealing Solutions
-Organic sales for the business area as a whole declined by 2 percent. Sales in light vehicles declined. The development in the European market tracked the general downward trend.

Divestiture

-In March 2012, the Company announced that it has completed the divestment of its operation that manufactures rubber, plastic and foam components for the light vehicles industry. The buyer is Bavaria Industriekapital AG with its registered office in Munich, Germany. The operation is primarily located in France and was part of the Trelleborg Automotive business area. (From a press release on March 1, 2012)

-In January 2012, the Company announced that it has signed an agreement to divest its light-vehicle component operation to Bavaria Industriekapital AG, based in Munich, Germany. The operation, which manufactures rubber, plastic and foam components for the light vehicles industry, is primarily located in France and is part of the Trelleborg Automotive business area. The divested operation delivers components for pedal boxes and bump stop solutions for opening panels of a car, such as the trunk lid, doors and hood. The operation also delivers various types of components, such as gaskets and molded hoses. (From a press release on January 24, 2012)

Joint Ventures

-In July 2012, the Company and Freudenberg & Co. KG announced that they have completed the formation of the joint venture in antivibration solutions for light and heavy vehicles, TrelleborgVibracoustic. The headquarters will be in Darmstadt, Germany. The joint venture comprises of Trelleborg's earlier operation in antivibration solutions and Freudenberg's corresponding operation, Vibracoustic. At year-end 2011/2012, the combined annual sales were approximately 13.4 billion SEK, approximately 1.55 billion euros, of which Trelleborg Automotive accounted for approximately 7.1 billion SEK, about 819 million euros. Until now, Vibracoustic's products have been aimed at vehicles in the medium-sized and luxury segments, whereas Trelleborg Automotive has a strong market position in the smaller and medium-sized vehicle segments. In bringing the two companies together, the new joint venture will be able to supply all vehicle classes. (From a press release on July 3, 2012)

Restructuring

-In December 2012, Trelleborg Engineered Systems business area ceased to exist, and was split into three new areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions and Trelleborg Offshore & Construction.

-In February 2012, the Company announced that Trelleborg Automotive will be focused on antivibration solutions. Trelleborg Automotive's other operations – polymer boots for drive shafts and steering applications and noise damping solutions for brake systems – will be strengthened by integrating them into Trelleborg Engineered Systems and Trelleborg Sealing Solutions respectively. The operations had 2011 annual sales of about 600 million SEK (about 68 million euros) and about 750 million SEK (about 85 million euros) respectively. (From a press release on February 2, 2012)

Recent Development Outside Sweden

-In April 2012, the Company announced that it is increasing its presence and customer support in India. Trelleborg Automotive plans to form a joint venture during 2012. In 1996, the business unit established its business in Noida, India, to offer products such as anti-vibration rubber, rubber-to-metal bonded and polyurethane parts for passenger cars and truck applications. (From a press release on April 11, 2012)

R&D

R&D Expenditure

(in million SEK)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	309	273

R&D Facilities

-In April 2012, the Company announced that it is increasing its presence in India. Trelleborg Sealing Solutions established a core R&D site, "Center of Excellence", which was inaugurated in April 2012.

Investment Activities

Capital Expenditure

(in million SEK)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Overall	967	1,075

Investment Outside Sweden

<India>
-In April 2012, the Company inaugurated a newly constructed facility in Bangalore, India, to develop and manufacture high-performance sealing solutions for aircrafts, off highway equipment, trucks, passenger cars, as well as for industrial applications. The facility is part of the Trelleborg Sealing Solutions business area, and it will initially employ around 300 people. The site, which covers a total of 12,000 square meters/120,000 square feet, will focus on a broad range of sealing solutions in polytetrafluoroethylene (PTFE), polyurethane and speciality materials. (From a press release on April 27, 2012)