Annual report 2011 - Trelleborg

BUSINESS AREA
TRELLEBORG
ENGINEERED SYSTEMS
Market segments:
Infrastructure: specialized solutions
for infrastructure projects, such as
fender systems for harbors, tunnel
seals, dredging systems, pipe seals,
acoustic and vibration-damping
solutions for bridges.
Offshore oil & gas: niche-oriented
products for offshore oil and gas
extraction.
Transportation: acoustic and vibration-damping
solutions for railways
and vessels.
General industry: precision components
and systems in polymer materials,
such as hoses, elastomer materials
and polymer-coated fabrics. Other
speciallity products include molded
components for a variety of industry
segments, printing blankets for the
graphics industry and industrial
antivibration applications.
Production units:
Australia, Brazil, China, Czech Republic,
Estonia, Finland, France, Germany,
India, Italy, Lithuania, the Netherlands,
Norway, Poland, Singapore, Spain,
Sweden, the UK and the US.
Examples of brands:
Elastopipe®, Trelline® and Vulcan®.
Key customers:
Companies in infrastructure, offshore
oil & gas, food, chemicals, the graphics
and transport industries, and
major distributors of industrial commodities
Principal competitors:
Archer, Balmoral, Bridgestone, Continental,
Cuming Corp., Flint Group,
Floatation Technology, Hultec, Hutchinson,
IVG, Lords, Matrix, Schlegel,
Semperit, Stomil Sanok, Sumitomo
and Yokohama.
Net sales per geographic market Net sales per segment
Employees per geographic market
8 Annual Report 2011 Trelleborg AB
Western Europe, 56%
North America, 14%
Rest of the world, 30%
Improved presence
in rapidly expanding
markets
Market trend
Demand fluctuated in the various market
segments. Demand for input goods to
general industry was favorable during
the year. Lead times in the project-related
segments of infrastructure and offshore
oil & gas increased during the year.
Sales and earnings
Organic sales increased 1 percent (4)
for full-year 2011. Total sales, however,
were lower than in the preceding year,
due primarily to lower sales in the offshore
oil & gas segment. Operating profit
declined compared with 2010, mainly as
a result of lower project deliveries, production
disruptions in offshore oil & gas
and start-up costs in Brazil. Other parts
of the business area performed well during
the year. Operating cash flow was
weaker than in the preceding year, which
was principally due to lower earnings, a
higher capital expenditure level and a
rise in tied-up working capital.
Key events
The business area continued to
advance its positions in the offshore
oil & gas and printing blankets
segments.
Continued structural improvements as
a result of restructuring activities and
active portfolio management.
Divestment of the roofing operations
(Waterproofing).
Acquisition of the UK company PPL
General industry, 52%
Offshore oil & gas, 23%
Infrastructure construction, 19%
Agriculture, 1%
Transportation equipment, 5%
Polyurethane Products, with annual
sales of sek 90 m. PPL has a broad
portfolio of products and solutions
in the areas of offshore oil & gas
and infrastructure.
Acquisition of 60 percent of the French
company Bloch, with annual sales of
sek 70 m in high-end industrial hose
solutions.
Intensified focus on Brazil through the
acquisition of a local offshore oil &
gas company and investment in specialized
production of printing blankets
for the graphics industry.
Strategic priorities:
Continued active portfolio management
– invest in attractive segments
and exit segments with low potential.
Additionally strengthen presence in
markets with high growth, primarily
Asia and Latin America.
Acquisitions that support expansion in
key markets.
Continuously improve overall cost
structure by enhancing efficiency and
ensuring the optimal production
structure.
Recruit, develop and retain talented
individuals.
Events after year-end
The business area focuses on three
prioritized areas: offshore and
infrastructure construction, general
Western Europe, 61%
North America, 15%
Rest of the world, 24%
GRI: 2.2, 2.7