Trelleborg to Launch More Focused Organizational Structure (Sweden)
Trelleborg held its Capital Markets Day on Thursday, 6 December in Berns Salonger, Stockholm, Sweden. At the event, Trelleborg took the opportunity to release new financial targets for the Group and to launch a more focused organizational structure.
New financial targets are in line with Trelleborg’s ambitions to increase value creation and to be a world leader in selected market segments and geographic markets. They include organic growth of 5 percent or above as well as an operating margin before interest and tax of 12 percent or above of sales. Return on shareholders’ equity is set to be 15 percent or above.
“Trelleborg’s new financial targets shall be seen as realistic, reachable and in line with responsible risk taking. We have exceeded our previous financial targets and our ambition is to exceed these new targets as well,” says Peter Nilsson, President and CEO of Trelleborg Group.
From 1 January 2013, Trelleborg Group will be divided into five business areas; Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems.
“We have always had a market-driven approach. Our more focused organizational structure affirms that and makes our focus on selected segments more visible to our stakeholders,” continues Nilsson. “Fundamental to all we do is accelerating our customers’ businesses and we do that by providing solutions that give a better function, lead to better business, with better sustainability.
“Our solutions are based on polymer engineering. This is part of our core capabilities, as are our applications expertise, customer integration, local presence with global reach and our position as a business accelerator. We have emerged from a conglomerate into a focused polymer group with clearly defined strategic markets. Our evolution is powered by an improving geographic balance, a market-driven structure, optimization of our portfolio of offerings and excellence in all we do.”
It was highlighted at the Capital Markets Day how much the Group had moved toward its goal of an improved geographic balance. While sales in Western Europe, where Trelleborg has traditionally been strong, show a solid increase of 7 percent from 2006 to third quarter 2012, sales in other, especially emerging markets, have boomed percentage-wise. South and Central Americas have seen an increase of 88 percent, Eastern Europe a 71 percent growth and Asian sales have almost doubled, at 181 percent.
“Organic growth and investments in emerging markets have been key to improving global balance,” says Nilsson. “For instance, in 2005, Trelleborg had only two locations in China. Now there are six manufacturing and development sites along with many sales and engineering facilities. Similarly in Brazil, we have expanded our presence to more than ten manufacturing, development, engineering and sales locations that represent all parts of the Trelleborg Group.
“Getting the balance right in terms of geography and our portfolio of solutions has been achieved through organic focus on the right segments and geographical areas as well as strategic divestments, acquisitions and investments. Our new organization focuses on selected segments with growth opportunities and will act as the perfect platform for the next successful leap in Trelleborg’s evolution as a global leading force in polymers,” concludes Nilsson.
Trelleborg, December 19, 2012