Hexpol's sales down by 26 percent in first half, but returns to profit

ERJ staff report (DS)

Malmo, Sweden -- Hexpol AB -- Europe's largest custom compounder -- reported sales down by 28 percent in the six months to 30 June 2009 and by 26 percent in the three months to June 2009.

The company returned to profit in the second quarter, reporting after-tax profits of SEK 32 million (euro 3 million), after reporting a loss (after tax) of SEK 3 million in the first quarter.

Georg Brunstam, President and CEO said, "Overall, the first half of the year showed sharply reduced demand. Sales declined by 26 percent and operating profit amounted to 100 MSEK with an operating margin of 8.0 percent." he said the company is in the process of closing its mixing unit in Magog, Canada. He continued, "At the same time, we are working actively to improve our market positions under very uncertain market conditions.”

In the compounding business, Hexpol said it showed a good development during the second quarter as a result of reduced costs and a strong global market position. Nonetheless, sales declined by 28 percent and amounted to 467 MSEK (from 648 million), while operating profit amounted to 49 MSEK (previously 63 million)

Hexpol said it had been able to improve the margin through, "forceful actions to adapt costs and capacity utilisation." The company said the effects of the first quarter's restructuring package were largely realised.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from Hexpol