Annual report 2011 - Trelleborg

BUSINESS AREA
TRELLEBORG
AUTOMOTIVE
Market segments:
Light vehicles and Transportation
Equipment (trucks):
• Antivibration Solutions: noise and
vibration-damping solutions for all
vehicle segments.
• Damping Solutions: brake shims
and applied damping materials
(ADM).
• Insulation & Applied Solutions: polymer
boots for drive shafts and
steering applications as well as
other customized products.
Production units:
Brazil, China, France, Germany, India,
Mexico, Romania, Russia, South
Korea, Spain, Sweden, Turkey and
the US.
Key customers
Audi, Benteler, BMW, Chrysler,
Delphi, FAW, Fiat, Ford, GKN, GM,
Hendrickson, Hyundai, Mazda,
Maruti, Mercedes Benz, Nexteer, PSA,
Renault Nissan, Suzuki, Tata, Tenneco
Monroe, Toyota, Volvo and VW.
Principal competitors
Anvis, Bridgestone, Cooper Standard,
Continental, DTR, Freudenberg/
Vibracoustic, Hutchinson/Paulstra,
Keeper, Kwang Duk Auto, Meneta,
MSC, NOK, Tokai, Wolverine, ZF and
Zhongding.
Net sales per geographic market
14 Annual Report 2011 Trelleborg AB
Western Europe, 43%
North America, 20%
Rest of the world , 37%
Toward a global
leader in antivibration
Market trend
Demand in most key markets, such as
Germany, the US and China, increased
during the year.
Sales and earnings
Organic sales increased 15 percent (29)
for full-year 2011. Demand was favorable
for much of the year in the majority
of geographic markets. Operating profit
dropped slightly compared with 2010,
primarily as a result of rising and volatile
raw-material prices. Earnings were also
impacted by impairments made in Brazil
to inventory and other assets, primarily
of an historical nature, in conjunction
with a review following the divestment
made during the year of the brake hose
operation in Brazil. Earnings were positively
influenced by earlier capacity and
cost adaptations and healthy volumes in
some regions. Operating cash flow was
impacted by higher capital expenditures
and increased tied-up working capital.
Key events
Together with Freudenberg, an agreement
was signed covering all points of
principle in respect of the formation of
a joint venture in antivibration solutions.
For further information, refer to page 5.
As part of the continued focusing
of the business area, the business
area’s only brake hose operation,
domiciled in Brazil, and the gas spring
operation, in France, were divested.
Net sales per segment
Light vehicles, 95%
Transportation equipment, 5%
Continued investments in emerging
markets with substantial sales growth
in China, India and Brazil.
A new R&D centre was inaugurated in
Shanghai, China, focused on noise
and vibration-damping brake solutions.
Several long-term supply contracts for
new platforms for the major automotive
manufacturers in the US.
Relocation of operations from Höhr-
Grenzhausen, Germany, to Breuberg,
Germany, completed.
Strategic priorities:
Successfully prepare and implement
the integration of operations in cooperation
with Freudenberg.
Continuously improve profitability in
long-term attractive segments through
targeted actions.
Proactively capitalize on the market
opportunities arising during the
ongoing restructuring of the global
automotive industry.
Continued expansion in emerging
markets.
Optimization of global production and
excellence in production processes.
Be leading in solutions that support
fuel economy/weight reduction in cars
and trucks.
Recruit, develop and retain talented
individuals.
Events after year-end
Signed all ancillary and transitional
arrangements for the formation of
Employees per geographic market
Western Europe, 36%
North America, 12%
Rest of the world , 52%
GRI: 2.2, 2.7