Annual report 2011 - Trelleborg

66
CONSOLIDATED INCOME STATEMENTS
Net sales per market
Organic sales growth in 2011 in Western Europe amounted to 13
percent. Important countries to the Group, such as Germany, France
and Sweden, contributed positively to this trend. Organic sales
growth in North America was 2 percent. During the year, organic
growth in such key markets as China, India, South Korea, Japan,
Australia and Brazil increased a total of approximately 20 percent.
Western Europe remained Trelleborg Group’s most important
market with a 54-percent share of total sales. Other European
countries represented 6 percent of sales, North America 18 percent
and South and Central America 6 percent, while markets in Asia
and the rest of the world had a share of 16 percent.
The Group continued to focus the operation on prioritized
markets and selected customer segments.
In Trelleborg Engineered Systems, the investment in a new facility
for products and solutions used in oil and gas extraction in Brazil
that commenced in 2010 continued during the year. Investments
in specialized production for printing blankets in Brazil were also
initiated in 2011 to create a platform for growth in the graphics industry.
Furthermore, the business area strengthened its presence in
Brazil in offshore oil & gas through the acquisition of an operation
from a subsidiary of Veyance Technologies. This business focuses
on specially designed oil hoses for surface and deep-sea applications.
The acquisition of the French company Bloch, a privately
owned high-end industrial hose solution provider, will enable the
business area to expand its industrial hose offering and create the
conditions for future growth.
In Trelleborg Automotive, the brake hose for light vehicles and
gas spring segments were divested during the year. Meanwhile,
activities are underway with the German company Freudenberg to
form a joint venture in antivibration solutions for light and heavy
vehicles (for further details, see page 5).
Trelleborg Sealing Solutions strengthened its position in precision
seals during the year by acquiring Silcotech Group, an operation
focusing on precision seals and components in liquid silicone, primarily
for the pharmaceutical industry and medical technology sector,
but also used in certain critical electronic applications. The business
area continued to expand in China in 2011. A center of excellence for
certain production processes and industrial niche segments in
Bangalore, India, was opened in the latter part of the year.
Trelleborg Wheel System acquired UK company Watts Tyre
Group, one of the global major players in industrial tires. The acquisition
strengthens Trelleborg’s world-leading position in industrial
tires through geographic expansion and an increased presence in
the aftermarket. The business area also expanded in the Chinese
market for specialty tires, primarily in agricultural tires, by acquiring
an operation in eastern China. The acquisition also strengthens
Trelleborg’s competitiveness in other markets by expanding the
product range and by ensuring cost-efficient production.
Annual Report 2011 Trelleborg AB
Net sales per geographic market
sek m 2011 2010
Western Europe 15,735 14,190
North America 5,126 5,389
Rest of World 8,245 7,617
Continuing operations 29,106 27,196
Discontinued operations 44 1,582
Trelleborg Group 29,150 28,778
Continuing operations Organic growth
2011, %
Operating profit
SEK M
3,000
2,500
2,000
1,500
1,000
500
0
2007 2008 2009 2010 2011
Operating profit, continuing
Operating profit, continuing
operations, SEK M
operations, excl. items affecting
comparability, SEK M
Share of total
sales, %
Western Europe 13 54
North America 2 18
Rest of World 15 28
Total 11 100
Profit
Operating profit for the Group amounted to sek 2,689 m (1,952).
Changes in exchange rates, when translating the results of foreign
group companies had a negative impact of about sek 169 m on
operating profit compared with the preceding year (neg: 98). The
Group’s financial net amounted to an expense of sek 209 m (expense:
220). Profit before tax was sek 2,480 m (1,732). The tax cost for
the year totaled sek 642 m (cost: 549). Net profit was sek 1,838 m
(1,183) and earnings per share were sek 6.70 (4.30).
The Group’s discontinued operations recorded an operating
profit of sek 258 m (loss: 84).
Operating profit for the Group’s continuing operations totaled
sek 2,431 m (2,036).
The financial net for continuing operations amounted to an
expense of sek 209 m (expense: 218), corresponding to an average
interest rate of 3.1 percent (2.8). Profit before tax totaled sek
2,222 m (1,818). The tax cost for the year was sek 644 m (cost:
534) and the tax rate for the year was 29 percent (29). Net profit
amounted to sek 1,578 m (1,284) and earnings per share were sek
5.75 (4.65).