TRELLEBORG, SwedenTrelleborg Wheel Systems reported improved operating earnings for the three and six months ended June 30, but sales were fell 4.9 and 1.7 percent, respectively, from a year ago.
For the quarter, Trelleborg Wheel's operating income jumped 7.3 percent to $22.5 million, on sales of $161.9 million. For the half year, operating earnings rose 5 percent to $45.2 million on sales of $334.3 million.
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 ag market in terms of investment in equipment.
Sales in North America fell from the 2013 periods, Trelleborg said, but business showed signs of picking up 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.
Trelleborg Wheel Systems represents 18.5 percent of parent Trelleborg A.B.'s revenues.
Trelleborg A.B. reported growth in both net income and sales.