Trelleborg AB Business Report FY ended Dec. 2014
Financial Overview |
(in million SEK) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 22,515 | 21,473 | 4.9 | 1) |
| Operating Profit | 3,073 | 2,440 | 25.9 | 2) |
| Major automotive related segments | ||||
| Sealing Solutions - Sales | 7,582 | 7,034 | 7.8 | 3) |
| Sealing Solutions Operating Profit | 1,714 | 1,429 | 19.9 | - |
| TrelleborgVibracoustic - Sales* | EUR 1,779 million | EUR 1,713 million | 3.9 | 4) |
| TrelleborgVibracoustic - Operating Profit* | EUR 110 million | EUR 94 million | 17.0 | - |
| Other automotive related segments | ||||
| Trelleborg Industrial Solutions - Sales | 4,889 | 4,500 | 8.6 | - |
| Trelleborg Coated Systems - Sales | 1,794 | 1,700 | 5.5 | - |
*Sales and figures of TrelleborgVibracoustic are not consolidated into the Company's sales and are recognized under the equity method.
Factors
1) Net Sales
-The Company's net sales increased by 4.9% in the fiscal year ended December 31, 2014 to SEK 22,515 million. While the Company's organic sales decreased by 1%, its sales increased by SEK 320 million, or 2%, due to acquisitions. Additionally, positive currency effects contributed to a gain of approximately SEK 900 million, or 4%.
2) Operating Profit
-In the fiscal year ended December 31, 2014, the Company's operating profit increased by 25.9% over the previous year to SEK 3,073 million. Despite weaker sales, the Company's efficiency and cost controls measures strongly contributed to the increased profit. Both acquisitions and positive currency effects also added to the profit.
3) Trelleborg Sealing Solutions Sales
-Net sales for the Company's Trelleborg Sealing Solutions segment increased by 7.8% to SEK 7,582 million in the fiscal year ended December 31, 2014. Higher sales in the automotive markets in Europe and Asia improved organic growth in those regions.
4) TrelleborgVibracoustic Sales
-TrelleborgVibracoustic's sales in the fiscal year ended December 31, 2014 increased by 3.9% compared to the previous year to EUR 1,779 million. Improved sales performances in Europe and China were the main contributors towards the segment's organic sales growth of 4%.
Restructuring
Divestiture of Spanish rubber boot manufacturing facility
-The Company divested a facility in Spain that manufactures rubber boots for light vehicles. Formerly part of the Trelleborg Industrial Solutions business area, the facility was sold to the French Group Delmon Industrie S.A. (From a press release on September 30, 2014)
Relocation of engineered seals and bearings manufacturing operations
-The Company's Trelleborg Sealing Solutions business unit announced that it is relocating its manufacturing operations of engineered seals and bearings for advanced applications to the Colorado Technology Center in Louisville, Colorado, U.S. The Company's operations at the Colorado Technology Center will take place over 76,000 square feet in the center's industrial complex. Relocation of 125 employees and long-standing Broomfield manufacturing operations will begin in the second quarter. The new facility will be fully operational by October 2014. (From a press release on March 26, 2014)
R&D Expenditure |
(in million SEK) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Overall | 321 | 294 | 297 |
R&D Facilities
-In 2014, the Company had 40 research and development units located in approximately 20 countries.
Product Development
DualRubber chassis mount
-TrelleborgVibracoustic announced that it has developed a new chassis mount made from two different elastomer compounds. This 'DualRubber' mount can reduce axle vibrations and road noise, making it suitable for both conventional and particularly quiet drive systems such as those found in hybrid and electric vehicles. Initial measurements show a noise reduction of up to 7 dB and considerable vibration reduction. The reverberation period after crossing a transverse joint is cut by 40%. (From a press release on November 25, 2014)
Active vibration control for electric vehicles with range extenders
-TrelleborgVibracoustic has developed an active vibration control for electric vehicles with range extenders. The system improves comfort by eliminating vibrations from a 3- or 4-cylinder combustion engine used as a range extender. The TrelleborgVibracoustic Active Vibration Control system identifies and cancels specific dominant structure borne vibrations and resultant sounds. (From a press release on July 2, 2014)
Hydrobush for SUVs
-TrelleborgVibracoustic has developed the most powerful hydrobush for heavy SUVs. Previously unavailable in this vehicle segment, the new component is used in the Range Rover and Range Rover Sport. The key component of this innovation is a special hybrid stopper made of aluminum and high-performance plastics that can withstand loads of up to approximately ten tons. (From a press release on June 17, 2014)
Air suspensions for compact SUVs
-TrelleborgVibracoustic has developed the first air suspension for the compact SUV segment. The system will be used in a new model from a premium German OEM. The system enables consistent ground clearance while driving and allows the body to be raised by up to 40 millimeters above the standard level of 190 millimeters for better handling of rough terrain. With the Sportplus or low level setting, the body is lowered by 10 millimeters from its default level. The lower center of gravity improves drive quality and reduces fuel consumption at higher speeds. (From a press release on March 24, 2014)
Thermoplastic engine mount
-TrelleborgVibracoustic has developed a new thermoplastic engine mount by utilizing Solvay Engineering Plastics' MMI Technyl Design service. The new engine mount is used in PSA Peugeot Citroen's 3-cylinder engine. MMI Technyl Design is an advanced service used to design and develop lightweight products by utilizing with a comprehensive materials database to provide a wide range of calculations when integrated with injection process modeling. (From an article in the Nikkan Jidosha Shimbun on January 27, 2014)
Capital Expenditure |
(in million SEK) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Overall | 1,025 | 922 | 910 |
| -Sealing Solutions | 334 | 288 | 285 |
Investments Outside Sweden
-TrelleborgVibracoustic announced that it has inaugurated the extension of its production plant in Yantai, Shandong Province, China. The Company aims to serve the needs of the rapidly growing Chinese market by doubling the production capacity at Yantai. TrelleborgVibracoustic will invest a total of CNY 200 million for facilities and machinery in the 8,000-square-meter expansion. In addition to chassis mounts and commercial vehicle air springs, the site's 380 employees produce engine mounts and torsional vibration dampers for local and global OEMs and Tier 1 suppliers. The Yantai site presently spans over 16,000 square meters, and includes R&D capabilities for tooling and process design as well as manufacturing and assembly. (From a press release on November 6, 2014)
-TrelleborgVibracoustic announced that it has established a new production site in Thailand. Starting in the second quarter of 2015, the Rayong plant will manufacture engine mounts, chassis components, and dampers. The new production facility is located close to Ford, Suzuki and other OEMs. Over the coming years, the facility will employ approximately 200 workers. In the future, an additional 2,000-square-meter expansion may be added to the current production area of 3,900 square meters. (From a press release on October 8, 2014)