Trelleborg Made 9 Billion By Selling Special Tires
On January 27, 2023, Trelleborg took the lead in publishing its 2022 financial report. We noticed that its tire business has experienced a huge growth, even exceeding the overall sales growth.
Ukohama is promoting its acquisition of Trelleborg wheel system - if you look at the business status of Trelleborg wheel system, you can understand why Ukohama is so active in this acquisition. In 2022, the sales of Trelleborg Wheel System (TWS) increased by 32% year-on-year to SEK 13.7 billion (about 8.978 billion yuan). Although many tire companies have reported the bleak market in the fourth quarter, Trelleborg Wheel System has experienced good organic sales growth in all tire categories and most regions. With regard to the sales growth in the fourth quarter, Trelleborg said that it was the strong orders in the supporting market that drove the overall business development. However, Trelleborg also found the cold situation in the replacement market - compared with the original market, the sales in the replacement market declined. In addition to the increase in sales, the profit level of Trelleborg is also rising. Trelleborg said that due to effective cost control and price adjustment to cope with rising costs, the profitability of the wheel system department has improved. The department reported that its profit increased 46% to SEK 1.7 billion (RMB 1.114 billion), benefiting from the strong sales in North and South America. However, Trelleborg also mentioned the sales forecast for 2023. Since the sales of special tires from 2021 to 2022 saw an unprecedented growth, the market demand will gradually be met, and the market may cool down in 2023. In the first half of this year, Ukohama is expected to complete the acquisition of its wheel system. Whether Trelleborg wheel system can bring it more generous returns will need to wait for a longer time to prove. However, there is no doubt that the market share of Ukohama in the global special tire market will increase dramatically.
Trelleborg Group said in its financial report that 2022 became a "record year" for Trelleborg due to its very strong business performance in the last quarter. The financial report shows that the group sales of Trelleborg increased by 27% year-on-year to SEK 30 billion (19.659 billion yuan), of which the last quarter of 2022 increased by 35%. The annual profit (EBIT) increased by 30% to SEK 5 billion (RMB 3.277 billion), and the corresponding profit margin was 16.8%, higher than the 16.4% reported last year. Peter Nelson, chief executive officer and president of Trelleborg, said that Trelleborg intends to continue to invest in polymer solutions in the future to meet the rapid growth demand of the aerospace industry, medical care and medical field and "selected industrial fields". Nielsen said that Trelleborg would further expand its business through the combination of acquisition and key organic measures. From the perspective of annual performance, the annual sales of Trelleborg Industrial Solutions increased by 28%, slightly lower than SEK 14 billion, while the revenue increased by 42% to SEK 1.9 billion. Trelleborg said that the sales trend in all major geographical regions was strong, and each market segment had a double-digit organic growth - although the order volume declined slightly in the fourth quarter, the order volume at the end of the year was still strong. The sales of Trelleborg Sealing Solutions (TIS) increased by 25% to SEK 15.6 billion, while the revenue increased by 22% to SEK 3.5 billion. Similarly, this business sector also experienced "decline in order volume in some market segments" in the fourth quarter, but the overall trend of the global market has not changed. However, he also stressed that according to the overall assessment of his group, the demand in the first quarter of 2023 will be lower than that in the fourth quarter of 2022.
