Currency, mix impact Hexpol results

Malmo, Sweden – Hexpol Group has seen its sales and earnings (EBIT) decline over the third quarter and the first nine months of the year, due in part to currency and mix effects.

For the three months to end of September, the Swedish group posted sales of SEK4.7 billion (€430 million), down 6% from nearly SEK5 billion reported last year. 

Earnings for the period fell 14% year-on-year at SEK688 million, Hexpol reported 24 Oct.

For the first nine months of the year, earnings declined by more than 12% to SEK2.6 billion, on 4% lower sales of SEK15 billion.

During the third quarter, Hexpol said it saw “stable volumes” within the group: Volumes in Europe grew “slightly” while those in North America decreased.

Hexpol Compounding reported a 6% year-on-year decline in third quarter sales to SEK4.3 billion, impacted by a SEK290 million negative effect of stronger Swedish krona against the euro.

The North American market showed a 'generally lower demand', impacted by financial uncertainty.

Sales were positively affected by acquisitions (5%), which partially offset lower demand and currency impact.

In terms of end users, the automotive industry showed ‘continued weakness’, mainly in North America.

This was partly offset by increased demand from customers within building and construction and cable compounds.

Raw material prices as well as sales prices were stable, both sequentially and compared to the same period last year.

Hexpol Engineered Products reported flat sales over the third quarter at SEK353 million, reflecting a SEK22 million negative impact of exchange rate.

Operations in Asia developed positively during the quarter.

Overall, the group reported a 10% decrease in sales in Americas and 6% in Asia, compared to the third quarter of 2024 while Europe remained flat.