Year-end report 2015

Fourth quarter 2015 – Continued growth and strong margins

• Sales rose 11 per cent to 2,596 MSEK (2,331).
• Operating profit increased 33 per cent to 456 MSEK (344**).
• Operating margin increased to 17.6 per cent (14.8**).
• Profit after tax increased 32 per cent to 326 MSEK (248).
• Earnings per share rose 32 per cent to 0.95 SEK (0.72).
• Operating cash flow increased to 562 MSEK (517).

Full year 2015 – Very strong growth and strong margins

• Sales rose 26 per cent to 11,229 MSEK (8,919).
• Operating profit increased 35 per cent to 1,964 MSEK (1,456**).
• Operating margin increased to 17.5 per cent (16.3**).
• Profit after tax increased 33 per cent to 1,393 MSEK (1,048).
• Earnings per share rose 33 per cent to 4.05 SEK (3.05).
• Integration of units acquired in 2014/2015 (Kardoes, Vigar Rubber Compounding, Portage Precision Polymers and RheTech Thermoplastic Compounding) was successfully completed.
• Operating cash flow increased to 2,185 MSEK (1,676).
• The share split 10:1 (each existing share is divided into ten shares), resolved by the Annual General Meeting, was completed in May.
• The Board of Directors proposes a dividend of 1.70 SEK (1.20) per share, an increase by 42 per cent.

President’s comments

“The fourth quarter of 2015 was once again a strong quarter for the HEXPOL Group – by far our best fourth quarter. The Group sales increased 11 per cent, and our operating profit increased significantly, +33 per cent, while the operating cash flow once again was very strong, 562 MSEK. We had strong sales growth primarily thanks to our (in 2014 and 2015) acquired units and positive currency effects. Sales were negatively affected by considerably lower sales prices due to considerably lower raw material prices than the corresponding year-earlier period. The volume development was positive in all geographical regions, compared to the corresponding year-earlier period and price pressure was continued strong, during the quarter on all markets.

During 2015, we have continued to improve our market positions and the integration of the acquired units was completed successfully. Our financial position remains very strong and with a net cash of 454 MSEK, we are well equipped for continued expansion. At the beginning of the year, the acquisition of RheTech Thermoplastic Compounding was finalized and the business has developed according to plan.”

                                                                                                             Georg Brunstam, President and CEO

** Including acquisition, integration and restructuring costs (Vigar) 38 MSEK

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, 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 2015 amounted to 11,229 MSEK. The HEXPOL Group has approximately 3,900 employees in eleven countries. Further information is available at www.hexpol.com.

This press release consists of such information that HEXPOL AB (publ) 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 February 3, 2016.

Tags: