Interim report January-September 2019
Third quarter 2019 – Increased sales and significant strategic acquisition
- Sales increased 23 per cent to 4,244 MSEK (3,443).
- Operating profit, excl. non-recurring items, increased 11 per cent to 583 MSEK (527).
- Operating margin, excl. non-recurring items, amounted to 13.7 per cent (15.3).
- Profit after tax amounted to 355 MSEK (404).
- Earnings per share, excl. non-recurring items, increased to 1.27 SEK (1.17). Earnings per share including these items amounted to 1.03 SEK (1.17).
- Operating cash flow increased to 812 MSEK (516).
- July 1st Preferred Compounding, a notable Rubber Compounder in North America, was acquired.
- Non-recurring items, before tax, amounted to 100 MSEK.
Jan-Sep 2019 – Increased sales and significant strategic acquisition
- Sales increased 15 per cent to 11,734 MSEK (10,213).
- Operating profit, excl. non-recurring items, increased 6 per cent to 1,720 MSEK (1,628).
- Operating margin, excl. non-recurring items, amounted to 14.7 per cent (15.9).
- Profit after tax amounted to 1,206 MSEK (1,241).
- Earnings per share, excl. non-recurring items, increased 4 per cent to 3.74 SEK (3.61). Earnings per share including these items amounted to 3.50 SEK (3.61).
- Operating cash flow increased to 1,875 MSEK (1,340).
President’s comments
“The sales increased 23 per cent and operating profit, excl. non-recurring items, increased 11 per cent in the third quarter 2019. The sales increased sharply, thanks to the acquisitions, mainly Preferred Compounding, but also Mesgo Group and Kirkill Rubber. However, organically we had a negative sales development in the quarter and saw consequently a continued softening in demand. We are very pleased with the acquisition of Preferred Compounding and together we will be able to continue to develop our compounding business in America. Following the integration at Preferred Compounding has a restructuring project been initiated in order to optimize the operations and extract cost synergies.
The sales increased 15 per cent and earnings per share, excl. non-recurring items increased by 4 per cent, during January-September 2019. Operating cash flow was strong and increased by 40 per cent. 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. The information was submitted for publication, through the agency of the contact person set out above, at 1:00 p.m. CET on October 24, 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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