(Reuters) -Swedish engineering group Trelleborg missed market forecasts for second-quarter core earnings on Thursday, as U.S. President Donald Trump’s trade war made customers cautious to place new orders, although it said business activity improved towards the end of the quarter.
WHY IT’S IMPORTANT
Trelleborg, which has more than 100 manufacturing facilities around the world, including in the U.S., said in April the direct impact of Trump’s trade policies would be limited, but indirect effects could still negatively affect its business.
BY THE NUMBERS
Trelleborg’s adjusted operating earnings before amortisation (EBITA) fell 1% to 1.59 billion Swedish crowns ($162.92 million) in the quarter. Analysts were expecting 1.62 billion crowns on average, according to LSEG’s I/B/E/S data.
Foreign exchange rates negatively impacted the quarterly core profit by 104 million crowns, the company said.
Its order intake grew compared to the previous three months, with a stronger performance in June than at the beginning of the second quarter.
KEY QUOTE
“(The improving business activity) gives us reason for cautious optimism as we enter the second half of 2025, where we believe there is potential for organic growth for the Group,” CEO Peter Nilsson said in the press release.
(Reporting by Marta Frąckowiak in Gdansk; Editing by Milla Nissi-Prussak)
