Annual report 2011 - Trelleborg

BUSINESS AREA
TRELLEBORG
SEALING SOLUTIONS
Market segments:
General industry: advanced sealing
solutions in speciallity materials
designed for a range of industrial applications.
The largest product groups are
O-Rings, rotary seals and hydraulic
seals.
Aerospace: safety-critical aircraft seals
used in virtually all major commercial
and military aircraft programs. Key
application areas are engines, flight
control actuators, landing gear, airframes,
wheels and brakes.
Automotive: advanced and often safetycritical
seals, mainly for fuel systems,
steering, air conditioning and exhaust
systems.
Transportation equipment, Agriculture,
Offshore oil & gas: safety-critical precision
seals for use in, for example, trains,
engineering and agricultural equipment
and offshore oil & gas.
Production units:
Brazil, China, Denmark, France, India,
Italy, Japan, Malta, Mexico, Poland,
Sweden, the UK and the US.
Market offices:
Argentina, Austria, Belgium, Brazil,
Bulgaria, Canada, China, Croatia, Czech
Republic, Denmark, Finland, France,
Germany, Hong Kong, Hungary, India,
Italy, Japan, Malaysia, Mexico, the Netherlands,
Norway, Poland, Russia, Singapore,
Slovakia, South Korea, Spain,
Sweden, Switzerland, Taiwan, Thailand,
Turkey, the UK, the US and Vietnam.
Examples of brands:
Busak+Shamban®, American Variseal®,
Forsheda®, GNL, Orkot®, Palmer
Chenard, Polypac®, Nordex, SF Medical,
Shamban®, Skega®, Stefa® and Wills.
Key customers:
ABB, BOC Edwards, Bosch, Caterpillar,
GEA Group, Honda, Husky, Liebherr,
Rolls Royce, Scania, Siemens, Spirit
Aero systems, Visteon, Volvo and ZF
Group.
Principal competitors:
Federal Mogul, Freudenberg, Green
Tweed, Hutchinson, NOK, Parker
Hannifin, Saint Gobain and SKF.
Net sales per geographic market
10 Annual Report 2011 Trelleborg AB
Western Europe, 58%
North America, 21%
Rest of the world, 21%
Higher delivery
capacity and increased
market shares
Market trend
Demand remained highly positive in all
major market segments and geographic
areas.
Sales and earnings
Organic sales rose 16 percent (33) for
full-year 2011. Demand was strong in
all segments and geographic areas.
Operating profit improved significantly
compared with 2010 as a result of higher
demand, a more efficient structure,
a continued favorable product mix and
good capacity utilization. The operating
cash flow remained very strong primarily
due to the improvement in earnings and
the continued efficient management of
working capital.
Key events
The business area continued to
capture market shares and strengthen
its market positions during the year.
The sharp rise in raw-material costs
was offset through price increases
and continued measures to enhance
manufacturing and purchasing
efficiencies.
The acquisition of Silcotech
strengthens the presence in the
growth segment of life sciences.
Net sales per segment
General industry, 57%
Light vehicles, 16%
Offshore oil & gas, 2%
Agriculture, 3%
Transportation equipment, 10%
Aerospace, 12%
Silcotech manufactures such items
as liquid silicone seals.
The expansion in India and China
continued with a new state-of-the-art
manufacturing and marketing site in
Bangalore, India, and the expansion of
the production site in Shanghai, China.
Strategic priorities:
Increase market shares by offering the
market’s best service to selected
customers.
Further develop online tools and digital
services.
Growth through acquisitions. Monitor
and act on potential acquisition candidates
in selected markets.
Ensure optimal production structure
and increase the proportion of production
in high-growth countries.
Recruit, develop and retain talented
individuals.
Events after year-end
Trelleborg Automotive’s operation for
noise-damping solutions for brake
systems will be integrated into
Trelleborg Sealing Solutions.
Employees per geographic market
Western Europe, 56%
North America, 19%
Rest of the world, 25%
GRI: 2.2, 2.7