Trelleborg AB Business Report FY ended Dec. 2017
Financial Overview |
(in million SEK) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 31,581 | 27,145 | 16.3 | 1) |
| EBIT | 4,022 | 3,105 | 29.5 | 2) |
| Major automotive related segments | ||||
| Trelleborg Sealing Solutions - Sales | 9,956 | 8,494 | 17.2 | 3) |
| Trelleborg Sealing Solutions - EBIT | 2,231 | 1,902 | 17.3 | - |
| Other automotive related segments | ||||
| Trelleborg Industrial Solutions - Sales | 5,573 | 5,138 |
8.5 |
- |
| Trelleborg Coated Systems - Sales | 2,476 | 2,398 | 3.3 | - |
Factors
1) Net Sales
-The Company’s net sales in the fiscal year ended December 31, 2017 increased by 16.3% over the previous year to SEK 31,581 million. Organic sales rose 4%, or about SEK 935 million. The effects of structural changes were 12%, or about SEK 3,360 million, with the acquisition of CGS Holding accounting for the largest sales increase. Exchange rate effects upon translation of sales in 2016 to the exchange rates applying for 2017 amounted to approximately SEK 140 millon, a marginal percentage change. The organic sales trend for the year was positive for the Industrial Solutions, Sealing Solutios and Wheel Systems business areas. However, organic sales growth for the Coated Systems and Offshore & Construction business areas was negative.
2) EBIT
-In the fiscal year ended December 31, 2017, the Company’s EBIT for continuing operations including items affecting comparability was SEK 4,022 million, an increase of 29.5% over the previous year.
3) Sealing Solutions Sales
-Sales in the Company’s Sealing Solutions business area increased by 17.2% in the fiscal year ended December 31, 2017 to SEK 9,956 million. Organic sales within the business area increased by 8%. All geographic regions demonstrated a positive organic performance, with sales increasing to general industry and the automotive and aerospace industries. The strongest organic growth was noted in Asia, driven primarily by favorable sales to general industry.
Acquisitions
-The Company announced that it has finalized the acquisition of the U.S.-based privately-owned Automated Dynamics that specializes in the manufacturing of advanced composite components for particularly demanding applications. The company is located in Niskayuna, New York. Sales amounted to approximately SEK 65 million in 2016. This bolt-on acquisition is part of Trelleborg’s strategy to strengthen its positions in attractive market segments. (From a press release on December 13, 2017)
-Carolina Seal Inc, a privately owned company specialized in the distrubtion of polymer seals, such as O-rings, hydraulic seals and specialty knitting, by Trelleborg Sealing Solutions (From Annual Report 2017)
-White Baumaschinenreifen GmbH specialized in the service, fitting and repair of pneumatic and solid tires for construction veicles in Germany, by Trelleborg Wheel Systems (From Annual Report 2017)
R&D Expenditure |
(in million SEK) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 516 | 433 | 383 |
Product Development
Gasket with sealing and damping characteristics
-In 2016, the Company’s Sealing Solutions business area launched a gasket that combines both sealing and damping characteristics.
Capital Expenditure |
(in million SEK) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 1,437 | 1,148 | 1,314 |
| -Sealing Solutions | 387 | 310 | 320 |
Investments Outside Sweden
-The Company announced that it has decided to invest in a new state of the art production facility for sealing solutions in Denmark through its business area Trelleborg Sealing Solutions. The production will be relocated to a new facility close to the current one in Helsingor, Denmark. Trelleborg will invest a total of approximately SEK 120 M during 2017-2020. The new production facility will be dedicated to highly automated and lean production lines for the automotive, aerospace and renewable energy industries. It is estimated that production will be able to commence in the new facility at the beginning of 2020. (From a press release on August 17, 2017)