Hexpol marks ‘best year ever’
Malmo, Sweden – Swedish rubber group Hexpol AB has posted the “best year so far” in terms of financial results.
In 2017, group sales rose 12% year-on-year to SEK12,230 million (€1,244 million), while operating profit increased 3% to just under SEK2 billion, Hexpol announced 2 Feb.
This was despite ‘continued raw materials price pressure’ in the fourth quarter, which saw a 3.5% decline in operating profit to SEK467 million, compared to the same quarter in 2016.
Commenting on the company results, president and CEO Mikael Fryklund said sales to automotive related customers were “still good” in the fourth quarter.
Fryklund, who took over as Hexpol boss last July, also noted improved demand within engineering and general industry as well as construction industry.
Sales in Europe, including the recently acquired businesses of Berwin Group and Trelleborg Material & Mixing Lesina, rose 24% in 2017.
In the NAFTA region, sales increased 7% and while Asia delivered 16% growth in demand.
Despite the healthy growth in sales, exchange rate fluctuations had a negative impact of SEK2 million on operating profit for the year.
Hexpol Compounding’s sales increased 13% to SEK11,326 million, compared to the previous year, with operating profit of the unit up 4% at SEK1,873 million.
Sales within Hexpol’s Engineered Products business also rose 6% to SEK904 million. Operating profit dipped slightly at SEK113 million, compared to SEK115 million the previous year.