Malmo – Swedish rubber group Hexpol AB has posted growth in sales and operating profit in the first quarter of 2018, thanks to higher prices and strong automotive sales.
The company reported 5% increase in sales to SEK3.31 billion (€319 million) in the three months to end of March, compared to the same period last year.
Operating profit also rose 1.5% to SEK540 million, the company said in a 24 April statement.
Exchange rate fluctuations affected the overall sales negatively by SEK153 million, mainly due to the strengthening of the Euro against a weakened US dollar.
Volume development was positive with higher volumes in Europe and Asia and stable levels in NAFTA.
“The first quarter of 2018 was another strong quarter – our best quarter to date for both sales and operating profit,” said Hexpol president and CEO Mikael Fryklund.
Revenues were positively affected by higher prices on the back of increased raw materials prices, the Hexpol leader noted.
“Sales to automotive related customers were still good and improved to customers within engineering and general industry and the construction industry,” he further added.
Sales in the Hexpol Compounding business area rose 5% to SEK3.05 billion during the quarter with operating profit flat at SEK506 million.
Hexpol’s Engineered Products business area, however, performed more strongly. The unit report 11% higher sales at SEK 252 for the period, with operating profit 26% up at SEK34 million.