Operating profits up 98 percent in Q2 - Hexpol

ERJ staff report (LMH)

Malmö, Sweden - Second quarter operating profits at polymer processing group Hexpol have soared 98 percent to SEK 230 million (Euro 25.3 million ) year-on-year, according to the company's half year report.

The company, which makes rubber auto components and has compounding activities, also said in the 21 July report that Q2 net sales had increased sharply to SEK 1776 million, up from SEK 966 million from the same period last year. The operating margin for the quarter was 13 percent. Profit after tax for the period was SEK 158 million, up from SEK 80 million in 2010.

Hexpol said its acquired operation, Excel Polymers Group, performed significantly better than expected during the second quarter. Hexpol's compounding business showed a strong increase in sales, the company said, primarily due to the acquisition of Excel.

For the first half of the year, net sales in 2011 increased to SEK 3562 million from SEK 1716 million during the first half of 2010. Operating profit was SEK 440 million, up 117 percent from SEK 203 million. Operating profit for the first half of the year rose to 12.4 percent, from 11.8 percent in 2010.

“Our forceful growth has continued with sharply higher sales in all units. We have also further improved our margins as a result of high capacity utilisation in most of our production units,” said Georg Brunstam, CEO of Hexpol.

He added, “The integration of Excel Polymers Group has been completed and the units are successfully integrated on a geographical basis in the HEXPOL Compounding business area.”

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Press release from Hexpol