Trelleborg AB Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million SEK)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate
of change (%)
Net Sales 21,473 21,262 1.0 1)
Operating Profit 2,558 2,462 3.9 2)
Sealing Solutions
Sales 7,034 7,164 (1.8) 3)
Operating Profit 1,429 1,487 (3.9) -
Sales EUR 1,713 million EUR 1,633 million 4.9 4)
Operating Profit EUR 125 million EUR 99 million 26.3 -


1) Net Sales
-In 2013, the Company's net sales increased 1.0 percent to SEK 21,473 million. The Group had an organic growth rate of 1 percent. Effects of structural changes increased sales by approximately 4 percent or SEK 820 million, but were mostly offset by negative exchange-rate effects of 4 percent, corresponding to approximately SEK 700 million.

2) Operating Profit
-The Company's operating profit grew 3.9 percent to SEK 2,558 million in 2013. This increase was due to relatively stable sales trends, continued favorable efficiency and cost controls, and positive contributions from companies acquired during the fiscal year.

3) Trelleborg Sealing Solutions Sales
-Net sales for the Company's Trelleborg Sealing Solutions segment declined 1.8 percent to SEK 7,034 million in 2013. The decrease in net sales resulted primarily from a decline in organic sales in North America for the entire year, due to reduced exposure to the light vehicles industry.

4) TrelleborgVibracoustic Sales
-TrelleborgVibracoustic's net sales in 2013 increased by 4.9% in 2013 to EUR 1,713 million. Strong sales in China and North America contributed to an organic sales growth rate of 6 percent.


-TrelleborgVibracoustic will fully integrate its former joint venture, Sigma Vibracoustic India (SVIL). In doing so, TrelleborgVibracoustic will strengthen its position as the global market leader for automotive anti-vibration solutions. Previously, TrelleborgVibracoustic had acquired a 50% share held by Sigma Corporation. (From a press release on December 4, 2013)

Joint Ventures

-The Company's joint venture, TrelleborgVibracoustic, announced the closing of an agreement with HSS Otomotiv in Turkey to form its own joint venture dedicated to the production of air springs for commercial vehicles. The new joint venture, called Vibracoustic CV Air Springs GmbH, will be headquartered in Hamburg, Germany. Vibracoustic CV Air Springs will employ approximately 600 people in Germany, Hungary, Turkey, North America and China. TrelleborgVibracoustic will hold 50.1 percent of the shares in the joint venture, while HSS Otomotiv will own the remaining 49.9 percent. (From a press release on June 13, 2013)


-Trelleborg Sealing Solutions Germany GmbH, a subsidiary of the Company, received a Supplier Award from the Bosch Group in the category of Mechanics and Resale Goods.


R&D Expenditure

(in million SEK)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 309 309 273

Product Development

Gearbox mount
-TrelleborgVibracoustic has developed a new gearbox mount which eliminates high-frequency gearbox whine and provides significant weight savings. Instead of using conventional rubber mounts and a large mass damper to reduce the vibration, TrelleborgVibracoustic's mount uses an integrated mass absorber. This removes the need for the mass damper, thus reducing the weight of the mount. (From a press release on April 11, 2013)

Investment Activities

Capital Expenditure

(in million SEK)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 852 967 1,075
-Sealing Solutions 288 285 241

Investment Outside Sweden

-In response to increasing customer demand, TrelleborgVibracoustic launched plans to expand its facility in Yantai, China by an additional 8,400 square meters. Construction on the expansion was scheduled to begin in the second half of 2013. The Yantai plant currently produces passenger car bushings and torsional vibration dampers for the Asia Pacific region. (From a press release on April 23, 2013)

-The Company opened its new manufacturing facility in Wuxi, Jiangsu Province, China. The new operation will manufacture automotive halfshaft and steering systems boots. The manufacturing facility covers a total area of 2,500 square meters, with the possibility to extend it by an additional 800 square meters, and currently has 55 employees. The new facility will offer full service support to the local Chinese market, as well as key players from the Asia-Pacific automotive sector. It will also provide the Company's existing major international customers with local support and deliveries for their sites in China. (From a press release on March 19, 2013)