Second quarter of 2014 – Another strong quarter
· Sales rose 4 per cent to 2,145 MSEK (2,060). · Operating profit increased 15 per cent to 360 MSEK (312). · Operating margin improved to 16.8 per cent (15.1). · Profit after tax rose 13 per cent to 258 MSEK (228). · Earnings per share increased 13 per cent to 7.50 SEK (6.62). · Operating cash flow increased to 412 MSEK (385). · An agreement was signed July 11 to acquire the business of Kardoes Rubber Co., a well-known Rubber Compounder in the US market.
First half of 2014 – Volume increases in all regions
· Sales rose 5 per cent to 4,276 MSEK (4,074). · Operating profit increased 19 per cent to 724 MSEK (610). · Operating margin improved to 16.9 per cent (15.0). · Profit after tax rose 17 per cent to 520 MSEK (444). · Earnings per share increased 17 per cent to 15.11 SEK (12.90). · Operating cash flow rose to 699 MSEK (625).
“Also the second quarter of 2014 was a strong quarter for the HEXPOL Group. Our volume development was positive and volumes improved in all geographic regions compared with the year-earlier period. Gratifying is that volumes in Europe continued to recover. Sales increased by 4 per cent, despite a negative impact from lower prices for our principal raw materials which, however, has stabilised during the last three quarters. Our earnings per share improved to 7.50 SEK (6.62), up 13 per cent. The operating margin improved to 16.8 per cent (15.1) and our operating profit rose 15 per cent to 360 MSEK (312). Operating cash flow was once again strong, increasing to 412 MSEK (385).
The first half of 2014 was a period with volume increases in all geographic regions and with strong earnings development. Our earnings per share rose 17 per cent to 15.11 SEK (12.90). Return on capital employed increased to 30.7 per cent (25.3). Our balance sheet is strong and, with a net debt of 175 MSEK (985), we are well equipped for continued expansion.
An agreement was signed July 11 to acquire the business of Kardoes Rubber in Alabama, US. The acquisition is a very good complement to HEXPOL Compounding in the US and broadens and strengthens our presence with Rubber Compounds into end user markets like industrial materials handling, agriculture equipment and off the road tires. “
Georg Brunstam, President and CEO For more information, please contact:
Georg Brunstam, President and CEO Tel: 46 708 55 12 51
Karin Gunnarsson, Chief Financial Officer, Investor Relations Manager Tel: 46 705 55 47 32 HEXPOL is a world-leading polymers group with strong global positions in advanced rubber compounds (Compounding), gaskets for plate heat exchangers (Gasket), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily OEM manufacturers of plate heat exchangers and trucks, systems suppliers to the global automotive and engineering industries, the energy sector and medical equipment manufacturers. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2013 amounted to 8,036 MSEK. The HEXPOL Group has approximately 3,500 employees in ten countries. Further information is available at www.hexpol.com.
This report may contain forward-looking statements. When used in this report, words such as “anticipate”, “believe”, “estimate”, “expect”, “plan” and “project” are intended to identify forward-looking statements. Such statements could encompass risks and uncertainties pertaining to product demand, market acceptance, effects of economic conditions, impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of HEXPOL’s management as of the date made with respect to future events but are subject to risks and uncertainties. While all of these forward-looking statements are based on estimates and assumptions made by HEXPOL’s management and are believed to be reasonable, they are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward-looking statements. HEXPOL disclaims any intention or obligation to update these forward -looking statements.
This report consists of such information that HEXPOL AB is obliged to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 23 July 2014, at 12:00 p.m. CET. This report has been prepared both in Swedish and English. In case of any divergence in the content of the two versions, the Swedish version shall have precedence.
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The following files are available for download:
http://mb.cision.com/Main/1100/9618611/269138.pdf Half-year report January-June 2014