Hexpol revenues flat, as price pressure continues

Malmo, Sweden – Hexpol AB has reported flat third quarter results despite higher volumes, with sales slightly down SEK2,742 million (€274.4 million)) for the three months to 30 Sept, compared to SEK2,772 million last year.

Sales were negatively affected by “considerably lower sales prices due to considerably lower raw material prices,” said CEO Georg Brunstam, adding that price-pressure had continued in all markets.

Operating income was, likewise, on a part with last year’s third quarter at SEK475 million, with operating margin at 17.3% compared to 18.2% the year before.

Hexpol’s profitability, explained Brunstam, was negatively affected by a lower operating margin in the Berwin Group, acquired earlier in summer.

In the nine months to September, sales took a slight negative trend, with the figure dropping from SEK8,663 million in 2015 to SEK8,126 million.

Similarly operating profit remained flat for the nine months at SEK1,437 million.