Hexpol sales rose 89 percent in 2011

ERJ staff report (DS)

Stockholm, Sweden - Custom compounder Hexpol AB saw sales jump in both the 12 months and the three months to 31 December 2011. Operating profit almost doubled in the full year period.

The company said net sales in the full year increased 89 per cent to SEK 7,197 million (euro 700?? million)  from SEK3,798 million a year earlier. Operating profits rose by 95 percent to SEK 895 million.

In the final quarter, net sales increased to SEK 1,792  million while operating profit increased 61 per cent to  SEK 220 million.

Georg Brunstam, president and CEO of Hexpol, said, “The fourth quarter was another strong quarter for the Hexpol Group. We continued our strong growth with strong and stable margins. The Group's net sales rose 58 per cent, of which 15 per cent was organic. Net sales were strong in all markets, particularly in NAFTA, Eastern Europe and Asia. Our operating cash flow remained strong amounting to 363 MSEK (227).

Hexpol Compounding's net sales rose 70 per cent in the fourth quarter to 1,614 MSEK (950). The increase was primarily attributable to acquired Excel Polymers Group, as well as to overall organic growth in the engineering, automotive and energy sectors.

Operating profit increased 69 per cent to 203 MSEK (120*), corresponding to an operating margin of 12.6 per cent (12.6*). The increase was attributable to all units in the business area. Excel Polymers Group's earnings were strong, similar to the results of previous quarters in 2011.

A year-on-year increase was noted in the business area's net sales in Europe, primarily to automotive customers in Central and Eastern Europe. Net sales to industrial customers also rose.

The company said raw material prices were stable during the quarter.

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Press release from Hexpol

Annual results statement from Hexpol