Trelleborg rises as Q4 beat shows 'solid' drop-through

Trelleborg AB

27/01/2023 10:27

** Shares in Trelleborg  TRELb.ST  rise about 4% after the
Swedish engineering firm reports Q4 EBIT above estimates with
what Citi analysts deem "solid" drop-through
    ** Trelleborg reports Q4 EBIT of 1.24 billion Swedish crowns
($120.6 million), which Citi says is 3% ahead of consensus and
5% above the broker's estimate
    ** "Positive bottom line impact as drop through came in at
15% vs Citi 10%," the broker says
    ** Citi had expected incremental cost pressure in Trelleborg
Industrial Solutions, but says that instead the unit's EBIT
margin of 13.1% was broadly in line with consensus
    ** Trelleborg "continues to surprise positively on growth
and drop-through", adds the broker
    ** The company sees lower demand in Q1 of 2023 vs Q4, which
Citi thinks means 2-3% growth year-on-year vs "flattish"
consensus
    ** The stock is on track for its best day since July 2022
($1 = 10.2823 Swedish crowns)
 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))