Hexpol gains in first half despite currency swings

Malmo, Sweden – Hexpol AB has registered growth in the first half of 2018, thanks to higher volumes and selling prices.

In the six months to end of June, the Swedish rubber group posted a 6% increase in sales to SEK 6.77 billion (€656 million).  Exchange rate fluctuations, particularly weaker US dollar against Euro, had a negative impact of SEK 117 million on revenue.

Despite currency swings, volume development remained positive and the sales growth adjusted for currency effects amounted to 8%, announced Hexpol 18 July.

Hexpol also attributed stronger sales to a price increase which resulted from higher raw materials costs.

Operating profit increased 5% to SEK 1.1 billion for the first six months of the year, compared to SEK 1.04 billion the year before. The operating margin stood at 16.3%.

Exchange rate fluctuations had a negative impact of SEK 30 million on operating profit for the first half-year.

Commenting on the results, Mikael Fryklund, President and CEO, said sales were stable to automotive customers and to customers within building and construction.

Sales to engineering and general industry improved, Fryklund noted.