Hexpol 2010 results show strong growth, bigger margins

ERJ staff report (DS)

Stockholm - International compounding group Hexpol AB has reported much stronger sales and margins in the last quarter and full year of 2010.

In the final quarter, the company reported net sales up by 61 percent to 1,132 MSEK (euro 129 million) ( previously 703 MSEK). Operating profit, excluding exceptional items, jumped 71 percent to 137 MSEK (previously 80). Operating margin increased to 12.1 percent, from 11.4 percent.

For the full year, Hexpol said net sales increased by 46 percent to 3,798 MSEK (euro 433 million) (previously SEK 2,608 million). Excluding exceptionsls, operating profit amounted to 460 MSEK (previously 261), up 76 percent. Margins increased to 12.1 percent from 10.0 percent.

Georg Brunstam, President and Chief Executive Officer said, "Our strong growth continues and we increased our sales by 61 percent compared with the corresponding quarter of 2009. Our acquisition of the global compounding group Excel Polymers is now completed and has been consolidated since 30 November 2010. Work on integrating Excel Polymers into Hexpol Compounding's organisation on a geographic basis is proceeding well and the synergism represented by the acquisition is substantial. In the fourth quarter, volumes were strong in all market segments and we once again managed to cost effectively and flexibly manage the increased volume."

The company also held an extraordinary general meeting at which it approved the resolution by the Board of Directors on 11 January 2011 to conduct a rights issue of approximately 550 MSEK with preferential right for the company's shareholders. The funds will be used to helpfinance the acquisition of Excel Group.

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Press release (results) from Hexpol

Press release (rights issue) from Hexpol