ERJ staff report (DS)
Stockholm -- Both sales and profits increased significantly at Hexpol in the three months to 31 March 2011, compared with the same period a year ago. Much of th eincrease was due to the extra sales following Hexpol's acquisition of the Excel Polymers group last year.
Sales more than doubled to SEK 1786 million (euro 198 million) from SEK750m a year earlier. Operating profit amounted to SEK 210 million (euro 23.3 million) , up 141 percent from the previous figure of SEK 87 million. The organic sales increase, adjusted for the acquisitions of Excel Polymers and Elasto Group, was approximately 39 percent.
Hexpol president and CEO Georg Brunstam said, â€œGrowth in the first quarter was sharp with increased sales in all units and not least in the acquired Excel Polymers Group. Integration of the acquisition was achieved more rapidly than expected and cost synergies proved more substantial than previously assessed. We increased sales by 138 percent, of which approximately 39 percent represented organic growth, compared with the year-earlier period. Sales to all market segments were strong in the first quarter and not least to the engineering industry where we now have significantly increased our market share. Yet again, we have managed volume increases in a flexible manner.
The company said raw material prices continued to rise during the first quarter, due to higher global market prices and the improved business climate for industry. However, shortages continue to prevail for a number of raw materials. However, the higher raw material prices did not have a major impact on the Group's operating margin.
Hexpol Compounding's sales increased in the first quarter to SEK 1,598 MSEK million (euro 177 million), up 175 percent from the SEK 581 million reported a year earlier. The increase was principally attributable to the acquired Excel Polymers Group, but also stemmed from strong organic growth in the engineering and automotive segments.
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Press release (Q1 results) from Hexpol
Press release (AGM) from Hexpol