Hexpol posts higher sales and earnings

Malmo, Sweden – Hexpol AB has seen its sales and operating profit increase in the first nine months of the year, compared to the same period last year.

Sales grew 10% year-on-year to SEK10.2 billion (€981 million) in the nine months to end of September, while operating profit rose 7% to SEK1.6 billion, the company reported 25 Oct.

Exchange rate fluctuations, particularly the strengthening of Euro, affected the overall sales positively by SEK196 million and operating profit by SEK19 million during the period, Hexpol reported.

A volume growth of 8% and higher sales prices also contributed to stronger results.

Sales in Europe increased by 14%, in NAFTA by 6% and in Asia by 27% compared to the previous year. The Hexpol statement did not give further breakdown of sales figures in the said regions.

Hexpol’s Compounding business sales increased 10% to SEK9.44 billion during the first nine months of the year while segment operating profit rose 6% to SEK1.5 million for the period.

Sales in the Engineered Products business were up 13% to SEK769 million with operating profit up 26% at SEK108 million during the period.

In September, Hexpol acquired US-based rubber compounder Kirkhill Rubber for €42 million.

“Kirkhill has extensive knowledge in advanced elastomers and… is a very good complement to Hexpol Compounding in the US,” the Hexpol statement said.

A custom rubber compounder, Kirkhill operates within the aerospace, automotive, medical and other demanding industry segments.

The company also acquired an 80% share in Italian compounder Mesgo in early October with an investment of €168 million.

Commenting on the acquisitions, Mikael Fryklund, president and CEO, said the purchases gave Hexpol a 'better position within advanced elastomers and broadened its geographical presence in three new countries.'