Hexpol reports 46% rise in Q3 sales

Stockholm - Hexpol AB, the Swedish polymers group which has just acquired the global rubber compounding group, Excel Polymers, reported net sales of SEK 950 million (Euro 103 million) in the third quarter of 2010 ending 30 Sept., up 46 percent from SEK 651 million in the same quarter for 2009, the firm reported in a 21 Oct announcement.

"Our strong growth continued and we increased sales in the third quarter by 46 per cent, compared with the corresponding quarter in 2009," said Georg Brunstam, Hexpol's president and CEO, in the company announcement. "We also continued to improve our already strong operating margin to 12.6 percent (vs 12.4 percent in Q3 2009). The sales increase was strong in all geographic markets," he added.

Operating profit, at SEK 120 million, was also up on last year, by 48 percent, the firm said, adding that profit after tax was up 44 percent, at SEK 82 million versus SEK 57 million in Q3 2009.

Earnings per share also increased strongly, reaching SEK 3.09 in Q3 2010 vs SEK 2.15 in 2009. Operating cash flow amounted to SEK 100 million, down from SEK 112 million in Q3 last year.

In the first three quarters of this year, Hexpol saw sales up 40 percent on the prior year, at SEK 2666 million, while operating profit almost trebled, reaching SEK 323 million, as against SEK 83 million in the first three quarters of 2009, the announcement continued. After excluding items affecting comparability, the profit rise was a more modest but still substantial 78 percent higher than the SEK 181 million profit reported in 2009.

Profit after tax for the first three quarters totalled SEK 220 million, almost seven times the SEK 34 million seen in 2009's fiorst three quarters although, again, when items affecting comparability are excluded, last year's figure moves to SEK 115 million, representing an increase of more than 90 percent.

Earnings per share over the three quarters was SEK 8.29 as against SEK 1.28 in the same period last year, but when items affecting comparability are excluded, last year's figure improves to SEK 4.33 per share.

Hexpol holds strong global positions in advanced rubber compounds, gaskets for plate heat exchangers and wheels made of plastic and rubber materials for truck and castor wheels. The acquisition of Excel Polymers will "make us the largest global rubber compounding group, with estimated annual sales of about SEK 5.8 billion,” Brunstam concluded.

The group is organised in two business areas, Hexpol Compounding and Hexpol Engineered Products, and has some 2300 employees in nine countries. The firm's customers are primarily OEM manufacturers of plate heat exchangers and trucks, global systems suppliers to the automotive industry and the medical technology industry. Its rolling 12-month sales amounted to SEK 3400 million.

Read more at www.hexpol.com.