Annual report 2011 - Trelleborg

BUSINESS AREA
TRELLEBORG
WHEEL SYSTEMS
Market segments:
Agricultural: tires and wheel systems
for tractors and other vehicles used in
agriculture and forestry. The business
area is a leader in the extra-large tire
segment, in which Trelleborg has a
broad range.
Transportation: wheels and complete
wheel systems for materials-handling
vehicles for use at, for example, airports,
ports and warehouses. These
include forklift trucks and other highly
utilized and high-load materials-handling
vehicles.
Production units:
China, Italy, Latvia, Sri Lanka and
Sweden.
Market offices:
Africa, Asia, Australia, Europe, Middle
East, North and South America.
Examples of brands:
Trelleborg®, Bergougnan®, Rota®,
Monarch®, Mastersolid®, Orca, Watts,
Kargo, Freightmaster and Interfit.
Key customers:
Manufacturers of agricultural and forest
machinery, tire and machinery
sales companies and end customers.
Manufacturers of forklift trucks, freight
companies as well as authorities
and organizations responsible for
infrastructure.
Principal competitors:
Aichi, Alliance, Bridgestone,
Continental, Firestone Nokian,
Goodyear/Titan, Michelin, Mitas,
MITL and Solideal.
Net sales per geographic market
12 Annual Report 2011 Trelleborg AB
Western Europe, 68%
North America, 14%
Rest of the world, 18%
Stronger demand
and establishment
in China
Market trend
Demand for agricultural tires and industrial
tires, both from OEMs and the aftermarket,
increased sharply during the
year.
Sales and earnings
Organic sales rose by 27 percent (7) for
full-year 2011. Demand was particularly
strong in the agricultural tire segment.
The acquisition of Watts contributed to
a rise in sales for industrial tires. Operating
profit improved significantly on
account of favorable demand, enhanced
efficiency and effective management of
volatile raw-material prices. Operating
profit was also influenced by a changed
product mix and high capacity utilization.
Operating cash flow declined during the
year, mainly as a result of a rise in tied-up
working capital and establishment in
China.
Key events
Strong upswing in demand particularly
in the OEM segment following the
decline in 2009–2010.
Continued broadening of the business
area’s offering.
Successful integration of the Watts Tyre
Group (sek 300 m in annual sales)
Net sales per segment
Agriculture, 58%
Transportation, 42%
acquired in February. The acquisition,
which also included the Interfit operation
specialized in tire and wheel
service for forklifts, strengthened
earnings in industrial tires.
Trelleborg became the first western
manufacturer to conduct production of
agricultural tires in China, as a result
of the acquisition of a new plant in
Xingtai in April. Production developed
according to plan and the unit will be
able to supply global and local manufacturers
in the country.
Continued focus on marketing and
brand activities in cooperation with
several major manufacturers of agricultural
tires in addition to a broadening
of the green offering.
Strategic priorities:
Consolidation of the strong position
held in Agricultural & Forest Tires by
further developing the customer
offering and continuing the geographic
expansion.
Leverage implemented structural
measures to proactively expand in
attractive segments and markets.
Employees per geographic market
Western Europe, 43%
North America, 3%
Rest of the world , 54%
GRI: 2.2, 2.7