TRELLEBORG, Sweden (July 22, 2014) — Trelleborg Wheel Systems reported improved operating earnings for the three and six months ended June 30, but sales were down 4.9 and 1.7 percent, respectively, for the periods.
For the quarter, Trelleborg Wheel reported operating income of $22.5 million, a gain of 7.3 percent, on sales of $161.9 million. For the half year, operating earnings were up 5 percent to $45.2 million on sales of $334.3 million.
The second quarter earnings ratio of 13.9 percent was the highest ever recorded, parent company Trelleborg A.B. reported.
Trelleborg attributed the earnings gains to “efficient cost management, high productivity and sustained price discipline,” but said the revenue declines reflected a “temporary point of saturation” in the European agricultural market in terms of investment in equipment.
Trelleborg said organic sales dropped 9 percent, largely on falling original equipment business. Aftermarket sales in Europe remained stable, the company said, and grew in the extra-large ag tire segment.
Sales in North America were down from the 2013 periods, Trelleborg said, but business showed signs of picking toward the latter weeks of the period.
Trelleborg said it expects production of ag tires at its new plant in Spartanburg, S.C., to “gradually commence” starting in the second half of 2015.
Overall, Trelleborg A.B. reported double-digit growth in both operating and net income for the quarter and half-year periods, while sales increased by 2 and 3 percent, respectively. Trelleborg Wheel Systems represents 18.5 percent of Trelleborg A.B.’s revenues.
Are you paying attention to the ups-and-downs of the stock market?
|Yes, I invest in the market||
|Yes, but I mostly keep an eye on just my company's stock||
|No, it makes me nauseous||
|I’m glad I don't invest in the market; I would have lost my shirt||
|Total votes: 99|
Titan International and the United Steelworkers union have petitioned the U.S. International Trade Commission and U.S. Department of Commerce seeking relief from OTR tire imports from China, India and Sri Lanka. What’s your opinion?
|I wholeheartedly support their action – something needs to be done.||
|I think it’s a bad idea that could inevitably tie the hands of domestic tire makers.||
|I oppose any duties against tire importers—they only raise costs for distributors and make it harder to obtain inventory.||
|I’m kind of on the fence and not sure what’s right, but need more information before deciding.||
|I don’t really care whether or not relief is granted.||
|Total votes: 78|