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Year-end report 2011

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Fourth Quarter 2011 – Continued sharp growth with strong and stable margins

  • Net sales increased sharply by 58 per cent to 1,792 MSEK (1,132).
  • Operating profit increased 61 per cent to 220 MSEK (137*).
  • The operating margin amounted to 12.3 per cent (12.1*).
  • Profit after tax increased strongly to 157 MSEK (98*).
  • Earnings per share rose strongly to 4.55 SEK (3.34*).
  • Operating cash flow was very strong, amounting to 363 MSEK (227).
  • Agreement signed for the acquisition of the German TPE compounding company Müller Kunststoffe, which was completed in January 2012.

Full-year 2011 – Sharp growth with strong margins and improved market positions

  • Net sales increased 89 per cent to 7,197 MSEK (3,798).
  • Operating profit rose 95 per cent to 895 MSEK (460*).
  • The operating margin increased to 12.4 per cent (12.1*).
  • Profit after tax increased strongly to 619 MSEK (318*).
  • Earnings per share rose 72 per cent to 18.65 SEK (10.83*). Earnings per share, based on the number of shares at year-end, totalled 17.98 SEK.
  • Operating cash flow rose strongly to 911 MSEK (506).
  • The Board of directors proposes a dividend of 5.00 SEK per share (3.00).

President’s comments

“The fourth quarter was another strong quarter for the HEXPOL Group. We continued our strong growth with strong and stable margins. The Group’s net sales rose 58 per cent, of which 15 per cent was organic. Net sales were strong in all markets, particularly in NAFTA, Eastern Europe and Asia. Our operating cash flow remained strong amounting to 363 MSEK (227).

In January 2012, we finalised the acquisition of the German TPE compounding company Müller Kunststoffe, thus continuing our expansion within Compounding and enabling us to create a strong European TPE compounding business, while simultaneously starting up production in Southern China in the same product area.

Our earnings for 2011 were the Group’s best so far. We increased sales by a full 89 per cent to 7,197 MSEK (3,798). We also strengthened our market positions and experienced a significant increase in net sales in emerging markets. Our operating profit rose 95 per cent to 895 MSEK (460*) and operating cash flow was very strong and amounted to 911 MSEK (506). Earnings per share increased 72 per cent to 18.65 SEK (10.83*).”

Georg Brunstam, President and CEO

For further information, contact:

Georg Brunstam, President and CEO
Tel: +46 708 55 12 51

Urban Ottosson, CFO/ Investor Relations
Tel: +46 767 85 51 44

HEXPOL is a world-leading polymers group with strong global positions in advanced rubber compounds (Compounding), gaskets for plate heat exchangers (Gaskets) and wheels made of plastic and rubber materials for truck and castor wheel application (Wheels).Customers are primarily OEM manufacturers of plate heat exchangers and trucks, global systems suppliers to the automotive industry- and engineering industry and the medical technology industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. HEXPOL’s sales in 2011 amounted to 7,197 MSEK. The HEXPOL Group has approximately 3,000 employees in ten countries. Read more at www.hexpol.com.

This report may contain forward-looking statements. When used in this report, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and “project” are intended to identify forward-looking statements. Such statements could encompass risks and uncertainties, including 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 or 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 may be 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 7 February 2012, at 8:00 a.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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