Malmo, Sweden – Hexpol AB has reported a rise in both sales and operating profit over the first nine months of the year, largely helped by its recent acquisitions.
Operating profit was up 5.6% year-on-year at SEK1.7 billion (€158 million) on 15% higher sales of SEK11.7 billion, Hexpol announced 24 Oct.
Hexpol attributed the increase in sales, particularly in the third quarter of the year, to acquisitions, mainly of Preferred Compounding earlier in the summer.
Hexpol took over Preferred Compounding in July in a $239-million deal (€206 million) and according to Fryklund, a “restructuring project” has been initiated at the Copley, Ohio-based company to optimise the operations and extract cost synergies.
“However, organically we had a negative sales development in the [third] quarter and saw consequently a continued softening in demand,” said Mikael Fryklund, president and CEO.
With a strong operating cash flow of SEK1.87 billion, up 40% compared to last year, the Hexpol CEO said his company was “well equipped for further expansion."
Over the nine months to end of September, sales at the Hexpol Compounding business area rose 16% to SEK 10.9 billion, while operating profit, excluding non-recurring items, was up 6% at SEK1.6 billion.
Sales within the Hexpol Engineered Products business area were up 3% at SEK793 million, while operating profit fell 3.7% to SEK104 million.
Hexpol’s consolidated sales in Europe and Americas increased by 25%, and 11% respectively, while revenue in Asia fell 6% year-on-year.