Hexpol falls into loss as Q1 sales fall by 24 percent

ERJ staff report (DS)

Stockholm -- Hexpol, the custom compounding group, saw revenues down by 24 percent in the three months to March 2009, and made an operating loss, when restructuring costs were taken into account.

The company said sales amounted to SEK 647 million (euro 60.8 million), down from SEK 852 million. Operating profits were negative, at SEK 52 million (euro 4.9 million), compared with an operating profit of SEK 83 million a year ago. Net profits were also negative, at SEK 55 million, down from a profit of SEK 50 million in 2008.

President of Hexpol, Georg Brunstam said, "As expected, the first quarter was extremely challenging, with a sharp decline in demand. We continued to adapt our costs quickly and comprehensively to new market conditions characterised by sharply lower volumes. Our sales declined by 24 percent but, as a result of rapid and comprehensive measures, our operating profit amounted to 46 MSEK (excluding previously announced restructuring costs related primarily to the closure of our compounding plant in Canada). This corresponds to an operating margin of 7.1 percent (9.7). We are also working actively to improve our market positions in a highly uncertain market climate."

The AGM of shareholders also confirmed the board members and agreed a pay structure based on base salary and performance-related bonuses.

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Press release (interim results) from Hexpol

Press release (AGM) from Hexpol