Trelleborg Adapts to U.S. Tariff Challenges with Strategy
(Reuters) -Swedish industrial group Trelleborg sees a limited direct impact from U.S tariffs, which it expects to manage through production adjustments and price hikes, it said on Thursday.
Trelleborg, which has more than 100 manufacturing facilities around the world, including in the U.S., will address tariff challenges through optimising and localising its production, price management and flexibility in its global operations.
However, indirect effects such as supply chain disruptions and increased costs of raw materials could still negatively affect the business, it said in an earnings statement.
Its adjusted operating profit before amortisation rose to 1.62 billion Swedish crowns ($169 million) in the quarter, just below analysts' forecast of 1.63 billion, according to LSEG data.
Trelleborg said sales were weak particularly for seals used in the construction industry, hit by continued softness in the North American market, and noted a still subdued demand from carmakers.
It expects demand in the second quarter to be on a par with the previous one, but warned of unusually high uncertainty due to the geopolitical situation.
Its Swedish peer Sandvik, which makes metal-cutting and mining equipment, last week said it had so far seen no impact from U.S. tariffs on demand for its products.
($1 = 9.5835 Swedish crowns)
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi)
