Half-year report January-June 2019

Second quarter 2019 – Increased sales and strategic acquisition

  • Sales increased 6 per cent to 3,685 MSEK (3,461).
  • EBITA amounted to 566 MSEK (568).
  • EBITA margin amounted to 15.4 per cent (16.4).
  • Operating profit amounted to 551 MSEK (561).
  • Operating margin amounted to 15.0 per cent (16.2).
  • Profit after tax amounted to 413 MSEK (426).
  • Earnings per share amounted to 1.20 SEK (1.24).
  • Operating cash flow increased to 709 MSEK (522).
  • July 1st Preferred Compounding, a notable Rubber Compounder in North America, was acquired.

First half of 2019 – Increased sales and higher result

  • Sales increased 11 per cent to 7,490 MSEK (6,770).
  • EBITA increased 5 per cent to 1,173 MSEK (1,115).
  • EBITA margin amounted to 15.7 per cent (16.5).
  • Operating profit increased by 3 per cent to 1,137 MSEK (1,101).
  • Operating margin amounted to 15.2 per cent (16.3).
  • Profit after tax increased 2 per cent to 851 MSEK (837).
  • Earnings per share increased 2 per cent to 2.47 SEK (2.43).
  • Operating cash flow increased to 1,063 MSEK (824).

President’s comments

“The sales increased 6 per cent while operating profit was slightly lower, in the second quarter 2019. Organically we had a negative sales development in the quarter and saw consequently a continued softening in demand mainly from automotive related customers. The lower organic volume was managed in a good way. The operating cash flow was strong and increased by 36 per cent. We are very pleased with the acquisition of Preferred Compounding, in the beginning of July, which strengthens our global positions within advanced polymer compounds with improved supply chain, excellence within polymer materials and solid application knowhow. The sales increased 11 per cent and earnings per share increased to 2.47 SEK, in the first half-year 2019. Our financial position remains strong and we are well equipped for further expansion.” 

Mikael Fryklund, President and CEO

For more information, please contact:

Mikael Fryklund, President and CEO
Tel: +46 (0)40 25 46 61

Karin Gunnarsson, Chief Financial Officer/ Investor Relations Manager
Tel: +46 (0)705 55 47 32

HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily systems suppliers to the global automotive and engineering industry, construction industry, the energy, oil and gas sector, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2018 amounted to 13,770 MSEK. The HEXPOL Group has approximately 5,100 employees in fourteen countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 a.m. CET on July 18, 2019. 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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About Us

HEXPOL is a world-leading polymers group with strong global market positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gasket), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily system suppliers to the global automotive and engineering industry, the construction sector, the transportation, the energy, oil, and gas sector, the consumer sector, the cable and wire industry, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organized in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. Further information is available at www.hexpol.com.