STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
HEXPOL: (STO:HPOLB)
Third quarter of 2012 – Continued growth with strong and further improved margins
· Sales rose 7 per cent to 1,980 MSEK (1,843).
· Operating profit increased strongly by 19 per cent to 280 MSEK (235).
· Operating margin improved to 14.1 per cent (12.8).
· Profit after tax rose to 192 MSEK (165).
· Earnings per share increased to 5.58 SEK (4.80).
· Operating cash flow was strong, rising to 295 MSEK (204).
January–September 2012 – High growth with strong and improved margins
· Sales rose 16 per cent to 6,243 MSEK (5,405).
· Operating profit increased strongly by 24 per cent to 839 MSEK (675).
· Operating margin improved to 13.4 per cent (12.5).
· Profit after tax increased to 567 MSEK (462).
· Earnings per share improved to 16.47 SEK (14.10). The year-on-year rise was 23 per cent (13.42) based on the actual number of shares following the rights issue in March 2011.
· Operating cash flow was strong, increasing to 886 MSEK (548).
President’s comments
“The third quarter of 2012 was another very strong quarter for the HEXPOL Group. Our earnings per share rose strongly to 5.58 SEK (4.80), up 16 per cent. The operating margin improved further to 14.1 per cent (12.8) and our operating profit amounted to 280 MSEK (235), up 19 per cent. Sales rose slightly more than 7 per cent thanks to continued strong growth in NAFTA, while Europe displayed declining sales. The operating cash flow was once again strong, amounting to 295 MSEK (204). During the quarter, we noted a price decline for our primary raw materials.
Growth and profit trends were very strong in January–September 2012. Our earnings per share rose 23 per cent to 16.47 SEK (13.42 based on actual number of shares following the rights issue in March 2011) and we continued to improve operating profit and margins. Our operating cash flow was once again strong and improved additionally. Our balance sheet is very strong, with net debt of 879 MSEK (1,370) and a net debt multiple of 0.3 (0.6).”
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 wheels made of plastic and rubber materials for truck and castor wheel application (Wheels).Customers are primarily OEM manufacturers of plate heat exchangers and trucks, global systems suppliers to the automotive industry- and engineering industry and the medical technology industry. The Group is organised in two business areas, HEXPOL Compounding and HEXPOL Engineered Products. HEXPOL's sales in 2011 amounted to 7,197 MSEK. The HEXPOL Group has approximately 3,100 employees in ten countries. Read more at www.hexpol.com.
This report may contain forward-looking statements. When used in this report, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and “project” are intended to identify forward-looking statements. They may involve risks and uncertainties, including product demand, market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of HEXPOL’s management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by HEXPOL’s management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. HEXPOL disclaims any intention or obligation to update these forward-looking statements.
The report consists of information that HEXPOL AB (publ) is obliged to disclose in accordance with the Swedish Securities Market Act and/or the Financial Trading Instruments Act. The information was submitted to the media for publication on 23 October 2012 at 8:00 a.m.
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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