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Composites maker Hexcel posts 9.6% hike in Q3 sales

23 Oct '14

3 min read

Driven by commercial aerospace sales, revenues at composites maker – US based Hexcel Corporation expanded 9.6% year-on-year in the third quarter ending September 30, 2014.

Hexcel said its sales rose to $451.9 million in the third quarter of 2014, 9.6% higher than the $412.3 million reported for the third quarter of 2013.

Operating income in the reporting quarter also grew to $79.0 million, compared to $69.0 million in the prior year quarter.

In the third quarter of 2013, net income stood at $55.8 million, or $0.57 per diluted share, up from $48.7 million or $0.48 per diluted share in the corresponding quarter of 2013.

Gross margin for the third quarter of 2014 fell marginally to 27.0% against 27.2% in the third quarter of 2013.

Selling, General and Administrative expenses (SG&A) were the same as in the third quarter of 2013, while, research and technology expenses reached $10.1 million, slightly less than same period of 2013.

Adjusted operating income in the 2014 third quarter was $79.0 million or 17.5% of sales as compared to $69.0 million or 16.7 % of sales in comparable quarter of 2013.

Hexcel said there was nominal impact from exchange rates as compared to 2013.

Its effective tax rate for the third quarter of 2014 was 27.7% versus 27.9% in 2013. Hexcel said, the 2014 and 2013 quarters had a $1.7 million and $1.8 million tax benefit, respectively.

Division wise, commercial aerospace revenues surged 13.2% in the quarter under review led by a hike of 20% from a year ago quarter in new aircraft programs.

Orders from Airbus and Boeing for the third quarter of 2013 were up about 8% compared to the 2013 quarter and were about 5% lower than the run rate from the first half of the year.

Other sales, which include regional and business aircraft customers, were over 10% higher compared to the third quarter of 2013, and remained at about the same run rate as the last three quarters.

However, the space & defence division reported a 6.3% year-on-year drop in third quarter of 2014 revenues, led by Rotocraft sales which were down 15%, due to softness in Europe & Asia-Pacific regions.

The industrial segment reported a sales surge of 19.7% from the prior year quarter at $66.9 million in the third quarter of 2014, primarily from wind energy revenues.

During the reporting quarter, Hexcel invested $45.5 million and bought back 1,168,825 shares of its common stock, with $100 million still remaining under the authorized share repurchase program.

Hexcel expects sales of $1,830 million to $1,860 million in the current year, as commercial aerospace continues its strong pace, while lower space & defence sales, will be offset by higher industrial sales. (AR)

Fibre2fashion News Desk - India

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Composites maker Hexcel posts 9.6% hike in Q3 sales

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