TRELLEBORG, Sweden (Oct. 31, 2001)—Trelleborg Wheel Systems suffered an 82-percent drop in operating earnings in the third quarter as demand for the company's industrial and farm tires and wheels softened in its two largest markets, Europe and North America. Sales during the period rose 3 percent, to $70.2 million, but the pace of growth was less than that booked in the first six months, the company reported.
To accommodate falling demand, Trelleborg is implementing measures to achieve more cost-effective marketing and improve coordination among operating units. Gradual adjustments to manufacturing have eliminated 80 jobs in production.
Efforts to bring costs in line with revamped production and marketing organizations will cost the company between $15 million and $20 million in costs to be charged against fourth quarter earnings.
The company recently announced it would introduce Pirelli-brand farm tires to North America later this year, or early next year.
For the nine-month period ended Sept. 30, Trelleborg Wheel Systems reported operating profits of $10.7 million, on sales of $234.1 million.