Hexpol sees healthy profit on lower sales in Q3

ERJ staff report (DS)

Stockholm, Sweden -- Hexpol AB, the Swedish-based compounding and rubber gasket maker, saw higher profit on sales 18 percent lower for the three months ended September 2009.

The company said net sales for the quarter amounted to 651 MSEK (euro 63.4 million) from SEK 795 million, a decline of 18 per cent. Operating profit declined slightly to 81 MSEK from 85 million. However, after-tax profits increased to SEK 57 million from 48 million.

For the first nine months of 2009 sales were down by 24 percent, at SEK 1905 million. Operating profit and net profit also declined in the none-month period.

Georg Brunstam, President and CEO, said, "Lower sales were reported during the nine-month period due to sharply reduced demand. Sales declined 24 per cent, but rapid and forceful internal measures enabled us to report an operating profit of 181 MSEK and an operating margin of 9.5 per cent (excluding items affecting comparability). The operating cash flow was strong and our net debt has been reduced significantly. The market climate remains highly uncertain due to factors that include temporary government scrapping premiums in a number of major markets now being discontinued."

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Press release from Hexpol