Second quarter 2016 – Continued strong margins
· Sales amounted to 2,627 MSEK (2,910).
· Operating profit amounted to 465 MSEK (508).
· Operating margin increased to 17.7 per cent (17.5).
· Profit after tax amounted to 329 MSEK (357).
· Earnings per share amounted to 0.96 SEK (1.04).
· Operating cash flow amounted to 580 MSEK (640).
· In the beginning of June, Berwin Group, a well-known leading Rubber Compounder in the UK market, was acquired.
First half of 2016 – Stable volume development and continued strong result
· Sales amounted to 5,384 MSEK (5,861).
· Operating profit amounted to 962 MSEK (1,003).
· Operating margin increased to 17.9 per cent (17.1).
· Profit after tax amounted to 684 MSEK (709).
· Earnings per share amounted to 1.99 SEK (2.06).
· Operating cash flow amounted to 905 MSEK (1,120).
“The second quarter of 2016 was a quarter with slightly lower volumes but with continued strong margins. The Group sales amounted to 2,627 MSEK and the operating margin increased to 17.7 per cent. The operating cash flow was once again strong. The volumes were slightly lower compared to the corresponding year-earlier period, but with continued strong volumes to automotive related customers. Sales have once again been negatively affected by considerably lower sales prices due to considerably lower raw material prices than the corresponding year-earlier period. Price pressure was continued strong on all markets. During the quarter, Berwin Group, a leading UK Rubber Compounder, was acquired.
During the first half of 2016, the volume development was stable with continued strong result. Our financial position remains very strong and with a net cash of 234 MSEK, we are well equipped for further expansion.“
Georg Brunstam, President and CEO
HEXPOL is a world-leading polymers group with strong global positions in advanced polymer compounds (Compounding), gaskets for plate heat exchangers (Gaskets), and plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily systems suppliers to the global automotive and engineering industry, construction industry, the energy, oil and gas sector, medical equipment manufacturers and OEM manufacturers of plate heat exchangers and forklifts. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. The HEXPOL Group’s sales in 2015 amounted to 11,229 MSEK. The HEXPOL Group has approximately 4,100 employees in eleven countries. Further information is available at www.hexpol.com.
This press release consists of such information that HEXPOL AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 a.m. CET on July 20, 2016. This report has been prepared both in Swedish and English. In case of any divergence in the content of the two versions, the Swedish version shall have precedence.
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