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UPDATE 1-Trelleborg set new financial targets, ups EBIT margin goal
December 15, 2016 / 10:35 AM / a year ago

UPDATE 1-Trelleborg set new financial targets, ups EBIT margin goal

(Adds shares, background details)

Dec 15 (Reuters) - Swedish industrial group Trelleborg raised its operating margin target on Thursday, sending its shares higher, and as widely expected revised its sales goal after years of falling like-for-like turnover.

* Says targets EBIT margin excluding items affecting comparability of at least 15 percent vs previous target of at least 12 percent

* Sets total sales growth target, including organic growth in excess of underlying market growth, of 5-8 percent over an economic cycle

* Previous target was that average annual organic growth over an economic cycle should be at least 5 percent. In addition, further growth would occur through bolt-on acquisitions

* The firm, a maker of industrial rubber products such as seals and anti-vibration components, is set to exceed its old operating margin target for a fourth straight year

* Trelleborg shares rise 2.3 percent at 1024 GMT compared with a 0.2 percent decline ahead of the news

* Trelleborg had an EBIT margin of 13.5 percent in the Jan-Sept period

* For continuing operations including items affecting comparability (over an economic cycle), Trelleborg targets return on equity (ROE) of at least 12 percent

* Trelleborg’s rivals include Continental and Parker Hannifin, SKF and Bridgestone.

* Says “we are expecting that market will recover, giving Trelleborg a favorable and attractive market position when this happens”

* Says “we are investing heavily in further development of our digital offering” Source text for Eikon: Further company coverage: (Reporting by Johannes Hellstrom; editing by Niklas Pollard)

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