TRELLEBORG, Sweden (July 24, 2013) — Trelleborg A.B.'s Wheel Systems business unit reported single-digit gains in sales and operating income for the quarter ended June 30, but the company is continuing a "high level of preparedness" to address "fluctuating" market conditions.
Trelleborg Wheel Systems said its operating income rose 3 percent to $21.1 million despite "currency headwinds," and revenue was up 5.6 percent to $171.2 million despite a 1-percent drop in shipments.
The company described agricultural tire sales as level with the year-ago period and industrial tire sales as "weak."
The unit's operating income was impacted by inventory adjustments in the U.S. related to Trelleborg's acquisition of Maine Industrial Tire. These adjustments have, on the other hand, strengthened cash flow, Trelleborg said.
For the half year the unit's operating income slipped 2.8 percent to $43.3 million on 1.8-percent better sales of $342.1 million.
Parent Trelleborg A.B. reported operating profit in the quarter of $111.4 million, exclusive of the firm's participation in the TrelleborgVibracoustic joint venture. Sales edged up 0.3 percent to $869.9 million.
Operating income for the half year was essentially unchanged from a year ago at $210 million, while sales fell 2.8 percent.
Net profit for the quarter was $59.3 million, or 6.8 percent of sales, and $135 million for the half, or 7.9 percent of sales.