STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
Third quarter 2011 – Continued sharp growth with strong margins
· Net sales increased sharply and amounted to 1,843 MSEK (950).
· Operating profit rose 96 per cent and amounted to 235 MSEK (120).
· The operating margin amounted to 12.8 per cent (12.6).
· Profit after tax increased strongly and amounted to 165 MSEK (82).
· Earnings per share rose strongly and totalled 4.80 SEK (2.79*).
· Operating cash flow amounted to 204 MSEK (100).
· Continued expansion in China – decision to increase capacity for HEXPOL Compounding.
January - September 2011 – Sharp growth and improved margins
· Net sales increased sharply and amounted to 5,405 MSEK (2,666).
· Operating profit more than doubled and amounted to 675 MSEK (323).
· The operating margin rose to 12.5 per cent (12.1).
· Profit after tax increased strongly and amounted to 462 MSEK (220).
· Earnings per share rose strongly and totalled 14.10 SEK (7.49*). Earnings per share based on the number of shares at the end of the period totalled 13.42 SEK.
· Operating cash flow amounted to 548 MSEK (279).
President’s comments
“The third quarter of 2011 was the best quarter to date for the HEXPOL Group in terms of both sales and earnings. Our sharp growth continued in the third quarter, with strong sales in all units. The Group’s sales rose 94 per cent, of which 21 per cent was organic. Our operating margins remained strong as a result of continued cost-effectiveness and the flexible management of rising volumes, as well as favourable capacity utilisation in our facilities. Sales were strong in all geographic regions, with particularly strong growth in NAFTA and Asia. Our operating profit rose 96 per cent to 235 MSEK (120). Earnings per share increased strongly to 4.80 SEK (2.79*). Our operating cash flow remained strong and amounted to 204 MSEK (100).
We continued our forceful growth in China, and proceeded to expand in all product areas. Our sales in Asia rose 68 per cent. We have decided to invest in a new production line in HEXPOL Compounding in Qingdao, in addition to the earlier decision to expand ELASTO in the Guangdong province. We are also increasing our moulding capacity for gaskets to plate heat exchangers in HEXPOL Gaskets and launching polyurethane wheel manufacturing in HEXPOL Wheels.
Our earnings in January-September 2011 were strong and sales rose 103 per cent to 5,405 MSEK (2,666). Earnings per share totalled 14.10 SEK (7.49*), up 88 per cent.”
Georg Brunstam, President and CEO
HEXPOL (STO:HPOLB) 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 the medical technology industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. HEXPOL’s sales in 2010 amounted to approximately 3,800 MSEK. Following the acquisition of Excel Polymers Group, the HEXPOL Group has some 3,100 employees in nine countries and pro forma sales in 2010 in excess of 6,300 MSEK. Read more at www.hexpol.com.
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