Annual report 2011 - Trelleborg

92
NOTES – GROUP
Note 32
Other provisions
Restructuring
programs
Note 33
Accrued expenses and prepaid income
sek m 2011 2010
Interest 30 17
Wages and salaries 623 626
Payroll overheads 136 121
Pension expenses 14 23
Tools 17 22
Derivative instruments (Note 23) 14 13
Other 568 654
Total 1,402 1,476
Note 34
Contingent liabilities and pledged assets
sek m
Contingent liabilities
2011 2010
Pension obligations 4 4
Guarantees and other contingent liabilities 2 2
Total 6 6
Pledged assets
Plants and machinery 33 34
Total 33 34
Liabilities are recognized at amounts corresponding to fair value.
Other
provisions
sek m 2011 2010 2011 2010 2011 2010
Opening balance 133 390 352 486 485 876
Reclassification 6 0 –12 –84 –6 –84
Reversals –20 –8 –24 –3 –44 –11
Provisions for the year 55 106 208 229 263 335
Acquisitions for the year 0 0 6 0 6 0
Divestments 0 –2 0 –15 0 –17
Utilized during the year –114 –322 –164 –232 –278 –554
Translation difference 0 –31 0 –29 0 –60
Closing balance 60 133 366 352 426 485
Of which, non-current provisions 92 151
Of which, current provisions
Of which, provisions for
334 334
environmental commitments 50 52
Closing balances for provisions for restructuring programs relate primarily to the following:
Consolidation of parts of operations in Germany (Trelleborg Automotive).
Reorganization and concentration of Offshore operation (Trelleborg Engineered Systems)
Other provisions relate to:
Provisions of varying sizes in a number of units for environmental commitments, guarantee provisions, insurance
obligations and, provisions for ongoing cartel investigations at subsidiaries in the US and France.
Annual Report 2011 Trelleborg AB
Total
Note 35
Acquired and discontinued operations
2011
Acquisitions
A number of acquisitions took place during the year, but were not of a significant nature either individually or
collectively.
In chronological order:
PPL Polyurethane Products
PPL Polyurethane Products Ltd. generates annual sales of SEK 90 M and has about 90 employees. The company
develops, manufactures and markets a broad portfolio of polyurethane-based solutions and products, with a
focus on the offshore oil & gas and infrastructure segments.
The company is included in the Trelleborg Engineered Systems business area.
Watts Tyre Group
Watts Tyre Group has annual sales of approximately SEK 300 M and about 230 employees.
This acquisition strengthens Trelleborg’s world-leading position in industrial tires, through geographic expansion
and an increased presence in the aftermarket.
The company is included in the Trelleborg Wheel Systems business area.
Operations in Xingtai, China
Trelleborg acquired an existing facility from a Chinese subsidiary of US Group Main Industrial Tire LLC, and will
also take over approximately 180 employees.
The acquisition will facilitate the Group’s expansion in the Chinese market for specialty tires, primarily agricultural
tires.
The operations are included in the Trelleborg Wheel Systems business area.
Seawing Industria e Comercio de Mangotes Maritimos Ltda
The operation was a subsidiary of Veyance Technologies Inc with about 100 employees. The business focuses
on specially designed oil hoses for surface and deep-sea applications for the offshore oil and gas extraction
industry in Brazil.
The operation is included in the Trelleborg Engineered Systems business area.
Silcotech Group
Silcotech Group, with a manufacturing operation in Switzerland and joint venture operations in Bulgaria and
China, has total sales of slightly more than SEK 200 M and some 150 employees.
The operation focuses on precision seals for life sciences.
The operation is included in the Trelleborg Sealing Solutions business area.
Bloch S.A. (60%)
Bloch S.A. generates annual sales of about SEK 70 M and has approximately 20 employees. The agreement
encompasses the acquisition of 60 percent of the business with an option to acquire the remainder.
Bloch primarily specializes in complete solutions and special couplings for a wide range of industrial hoses
that offer protection in particularly demanding environments, such as chemical processing and the food sector.
The operation is included in the Trelleborg Engineered Systems business area.
Discontinued operations
The divestment of the roofing business (Waterproofing), formerly part of the Trelleborg Engineered Systems
business area, was finalized on January 31, 2011.
2010
Acquisitions
No significant acquisitions were made by the Group during the year.
Lutz Sales
A smaller complementary acquisition was made by Trelleborg Sealing Solutions when the business area
acquired the US-based Lutz Sales, with annual sales of approximately SEK 100 M and approximately 50
employees. Lutz Sales is a distributor of a broad range of precision seals and customer-specific rubber
components mainly in the North American market.
Discontinued operations
Hoses for light vehicles operation (Fluid Solutions)
The hoses for light vehicles operation, formerly part of the Automotive business area, was divested during the year.
In 2009, Fluid Solutions reported sales of approximately SEK 1,400 M and recorded a loss. The purchase
consideration was about SEK 300 M based on the estimated working capital level at the date of divestment.
The buyer was Bavaria Industriekapital AG, Munich, Germany.
Roofing operation (Waterproofing)
An agreement was signed to divest the roofing operation, formerly part of Trelleborg Engineered Systems.
The agreement was reached in the fourth quarter of 2010 and was concluded on January 31, 2011. The divested
operation had annual sales of approximately SEK 900 M and about 230 employees.
The purchaser was Axcel, a Nordic private equity fund.
GRI: 2.9