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Interim report January-March 2017

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First quarter 2017 – Increased sales and higher profit

  • Sales increased 14 per cent to 3,138 MSEK (2,757).
  • Operating profit increased 7 per cent to 532 MSEK (497).
  • Operating margin amounted to 17.0 per cent (18.0).
  • Profit after tax rose to 379 MSEK (355).
  • Earnings per share increased 7 per cent to 1.10 SEK (1.03).
  • Operating cash flow rose to 435 MSEK (325).
  • Mikael Fryklund appointed new president and CEO, is expected to start not later than July 1.
  • March 31, Trelleborg’s Rubber Compounding unit in Czech Republic, a well-known Rubber Compounder in Central Europe, was acquired.
  • In early April, Valley Processing, a well- known US Rubber Compounder, was acquired.

President’s comments

“The first quarter of 2017 was another strong quarter – our best quarter to date. The Sales increased 14 per cent and the volume development was positive. Earnings per share increased 7 per cent and the operating cash flow was once again strong, 435 MSEK (325).

During the quarter, the prices on our main raw materials have increased and the price pressure continued strong on all markets.

   At the end of the quarter Trelleborg’s Rubber Compounding unit in Czech Republic, a well-known Rubber Compounder in Central Europe, was acquired. In early April, Valley Processing, a well-known US Rubber Compounder, was acquired. Our strong operating cash flow and our net cash of 981 MSEK provides scope for continued acquisition-driven expansion.

   The Nomination Committee has proposed me as Chairman after Melker Schörling, who has been Chairman of the Board since our start and listing, and who unfortunately declined re-election. I am convinced that my successor Mikael Fryklund with his broad international experience from the rubber and plastic industry will continue to develop HEXPOL positively.”

       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 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 2016 amounted to 10,879 MSEK. The HEXPOL Group has approximately 4,400 employees in eleven 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. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 p.m. CET on April 28, 2017. 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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